Running a search fund can be an uphill journey, but is it better to go it alone or team up with a partner? In this edition of Search Fund Squared, we spoke with Pablo Delclaux and José De la Campa, co-founders of Third Square Capital, a search fund targeting opportunities at the intersection of Mexico and the U.S. market.
In this edition of Search Fund Squared, Pablo and José share their insights on the benefits and challenges of partnering up, navigating the unique business environment of cross-border opportunities, and the importance of timing and strategy when approaching investors.
MC: What made you want to be a searcher, and how did you come to the decision that this was your route?
Pablo: My background is in strategy consulting, where I worked extensively with industrial clients and private equity funds on due diligence and growth strategy. While I was aware of search funds, it wasn’t until my MBA at MIT that it clicked for me. The model combined the entrepreneurial drive I was seeking with the types of companies I had been analyzing in consulting. When I met José, he had already completed a successful self-funded acquisition and exit in Mexico. During the MBA, we realized we had complementary skills and personalities, so partnering up felt like the right move.
José: For me, the search fund route was a natural extension of my journey. After acquiring and scaling Grupo Empresarial Bousi, I learned the power of building a business from the ground up. My experience gave me a strong operational foundation, but I knew a partnership would be key for our next venture. Meeting Pablo at MIT solidified that idea – his strategic mindset complements my operational expertise perfectly.
MC: Do you think it’s advantageous to be a duo? Are there benefits to partnering up for a search fund?
Pablo: It’s not without trade-offs. A solo searcher might retain more equity, but the journey can be isolating and tougher to manage alone. Partnering with José, who has been through this before, has brought a lot of value. We have complementary strengths and balance each other in decision-making – José is more intuitive, and I’m more analytical. Being a duo lets us take on larger acquisitions and share the workload, which is especially helpful in competitive markets.
José: I’d add that the emotional support is just as important as the strategic benefits. Searching can be a lonely process, but having someone to share ideas and challenges with makes it much more manageable.
MC: Do you think being a duo makes you more investable from the perspective of search fund investors?
José: It’s been a tough year for fundraising. Investors are receiving an exponentially larger number of search fund projects each year as the number of searchers grows faster than the number of investors. That dynamic has made the process more competitive, and investors are more selective. Being a duo can help, as it allows us to bring a broader set of skills to the table. My operational experience appeals to investors looking for hands-on business management, while Pablo’s consulting and private equity background resonates with those seeking strategic growth. For some investors, having two partners means added capacity and resilience during the search and operating phases, which can be attractive.
Pablo: Investors value strong individual profiles, but the partnership dynamic also matters. We’ve seen that some investors are more confident investing in a duo because it spreads risk and increases bandwidth. While being a duo doesn’t guarantee success, it gives us an edge in demonstrating a well-rounded and complementary approach.
MC: What’s your criteria for an attractive acquisition? What’s on your shopping list for the dream SME?
José: We’re focused on businesses that operate at the intersection of the U.S. and Mexico. Ideally, we’d like a company with significant U.S. exposure – perhaps 60–70% of its customer base – and revenues in dollars while maintaining costs in pesos. This cross-border model offers natural advantages, particularly given the opportunities around nearshoring. Beyond that, we look for businesses with recurring revenue, a strong market position, and growth potential.
Pablo: Our priority is finding a business with a solid foundation that we can scale. We’re especially drawn to companies benefiting from cross-border dynamics, where we can leverage U.S.-Mexico synergies to drive growth. Recurring revenue, loyal customer bases, and operational efficiency are always high on our list.
MC: What do you anticipate being the biggest challenges in your search?
Pablo: Access to reliable information is a hurdle. The proprietary search process requires a lot of structure because resources like databases or public records aren’t as robust as in other markets, like Spain for example. We’ll need a disciplined approach to identify leads and qualify opportunities efficiently.
José: Seller expectations are another challenge. Many business owners are many times attached to their business and have high valuation expectations. Managing those expectations and building trust with sellers will be critical to our success.
MC: What advice would you give to someone considering becoming a searcher?
Pablo: Do your homework and talk to as many people as you can before jumping in. Beyond understanding the search model, you need a clear plan for fundraising. Timing is everything – starting your raise at the right time and approaching investors strategically can significantly impact your success.
José: Know yourself and what you need to succeed. Whether it’s a partner, a specific skill set, or a strong network, self-awareness will guide your decisions. Searching is a long and challenging process, but with the right preparation and mindset, it will be incredibly rewarding.
About Pablo Delclaux and Jose de la Campa
Pablo Delclaux is the co-founder of Third Square Capital. Prior to launching Third Square, Pablo worked in strategy consulting, advising industrial and private equity clients. He holds an MBA from the Massachusetts Institute of Technology (MIT).
José de la Campa is the co-founder of Third Square Capital. José is acquired and scaled an industrial laundry business called Grupo Empresarial Bousi through a self-funded search before selling it to a market leader. He holds an MBA from the Massachusetts Institute of Technology (MIT).
