What sets search funds apart from traditional private equity?

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September 03, 2024

by an member in Edmonton, AB, Canada

Search funds stand out from traditional private equity due to their unique focus on acquiring and operating a single company, typically in the lower middle market. This approach offers a more entrepreneurial experience, allowing professionals to take an active role in shaping the direction and success of the business. Unlike in larger firms, where roles can be more specialized, working at a search fund means you'll be involved in every stage of the process—from identifying acquisition targets and securing financing to driving growth and managing day-to-day operations. This comprehensive exposure provides invaluable experience in both strategic and operational leadership. For those who are entrepreneurial at heart and eager to have a significant, hands-on impact, a career in search funds offers an unparalleled opportunity to learn, lead, and create lasting value.

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Reply by a searcher
from Ryerson University in Toronto, ON, Canada
Precisely! not to mention, private equity have more dry powder to spend, focusing on middle market business (> 50 mm EV) while search funds target lower middle market companies (< 50 mm EV).
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Reply by an member
from University of Toronto in Toronto, ON, Canada
Valuable insight, the difference between the two was always a grey area for me. Thank you for simply clarifying it!
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