Isn’t a search fund just mini private equity? (January 2021)

Isn't a search fund just mini private equity?

SME Ventures answers a common question: how is a search fund actually different from a typical private equity deal?

  • Unpacks why a search fund isn’t just “mini private equity”
  • Unlike PE firms, which spread capital across a diversified portfolio and bring in outside managers, a search fund backs a single acquisition with the searcher stepping in as CEO
  • Covers how deal size and time horizon differ, with searchers typically running the business for a decade or more instead of working toward a fixed exit date
 

Here is the link to the full article.