In this edition of Search Fund Squared, we’re excited to spotlight Constantin Marek and Michal Lukasz Kaminski – co-founders of Lynx Trail Capital and pioneering search fund entrepreneurs in Poland.
As the search fund model continues to solidify in markets like Spain, France, and the UK, we at Moonbase Capital are excited to see this wave of growth moving eastward in Europe.
Poland offers fertile ground for the search fund model: a robust SME sector, increasing succession opportunities, and strong economic fundamentals. With GDP projected to grow nearly 4% in 2025 and over €150 billion in investments expected this year, the timing couldn’t be better.
Constantin and Michał bring complementary expertise and a shared vision that position them perfectly to seize this moment. We sat down with them to learn more about their journey, strategy, and what’s ahead.
Moonbase Capital: Let’s start with your backgrounds. What led you both to the search fund model and ultimately teaming up?
Constantin: Well, you might say we run a mathematical search fund—both of us initially studied mathematics. Michał was less faithful though; he switched to economics after just one year! 😊
Michał: True story! The behavioral analysis of companies and consumers captured my interest early on. Constantin stayed loyal to mathematics a bit longer.
Constantin: Exactly. While studying mathematics at Cambridge, I quickly realized my passion was more about applying math practically rather than delving into theory. I pursued a master’s in financial mathematics in Paris and then began my career in hedge funds in Jersey. Eventually, I wanted to reconnect with my Polish roots and shifted to Kraków, working in risk modeling at HSBC and UBS. I realized I craved more direct exposure to business risk, which led me to an MBA at INSEAD. There, I discovered the search fund model, joined the search fund club, interned at a Parisian search fund, and knew instantly this was my path.
Michał: My route was slightly different. After graduating from an economics program at the Warsaw School of Economics, I thought I’d naturally move into investment banking in London. Instead, I found myself in Poland’s Ministry of Economic Development, where I implemented some ideas from my bachelor’s thesis on innovation ecosystems. But my true calling was entrepreneurship—I founded a successful online economic news portal, later managed the largest business conference in Central Eastern Europe, and led an NGO organizing executive education programs in collaboration with Stanford GSB. My passion for learning took me to Berkeley for an MPA, and now I’m completing my Executive MBA at Kellogg-WHU.
Moonbase Capital: Fascinating backgrounds indeed! And how exactly did you two meet?
Constantin: On a typically rainy Cambridge day, about 15 years ago, in a traditional pub. Michał was visiting his brother Kamil, who was studying history there.
Michał: Who knew a rainy day would set us on this bright path!
Moonbase Capital: So why did you decide to launch a search fund together?
Michał: Over the years, we’ve developed very complementary skill sets. Constantin brings advanced analytical expertise, while I’ve always focused on managing people, building teams, and sales strategy.
Constantin: Exactly, and my risk modeling clearly showed there was no better combination in the market! 😄
Moonbase Capital: Why the search fund model specifically?
Michał: Launching another startup often means endless fundraising rounds. While we enjoy investor relations, our real passion lies in tackling tangible business problems right here and right now.
Constantin: We strongly believe that applying our diverse industry experience to an established business can drive impressive results while maintaining manageable risks—something startups don’t always offer.
Moonbase Capital: With global interest growing in search funds, what unique opportunities and challenges does the Polish market present?
Michał: Every market has its peculiarities. In Poland, entrepreneurs rarely consider selling their companies, making transactional readiness a challenge. It’s crucial to understand how valuations, reps and warranties, and deal structures are viewed locally. On the upside, Poland’s economy, famously described by economist Marcin Piatkowski as the European growth champion, has consistently outperformed expectations for decades. We’re now entering a wave of succession-driven opportunities, ideal for search funds.
Constantin: Precisely. You must be credible and professional, demonstrating you can successfully steer the ship post-acquisition. Tech-enabled services and B2B SaaS companies offer huge potential, particularly through tech nearshoring, leveraging Polish tech talent and competitive cost structures to expand across Europe or even globally.
Michał: Another aspect is the entrepreneurial spirit ingrained in Poland’s business culture. People here dislike bureaucracy, thrive on efficiency, and deeply value impactful, meaningful work. But you have to understand financing constraints—securing structured debt below €10 million, especially in asset-light businesses, can be complex.
Moonbase Capital: How do you identify potential companies to acquire?
Constantin: Classic search fund criteria, or as one investor humorously described it, we look for a beautiful, healthy horse that we can turn into a Pegasus in five years. We seek businesses with recurring revenues, EBITDA between €2-5 million, EBITDA margins above 25%, diversified customer bases, robust growth trajectories, strong management teams, and some exposure to tech without excessive risk.
Moonbase Capital: You’ve been searching for six months now, how’s it going?
Michał: Incredible. The conversations we’ve had with Polish entrepreneurs have been hugely inspiring. My prior experience gave me a substantial professional network, which has made a significant difference. Starting a search fund straight from an MBA without such a network would be quite tough.
Constantin: Michał definitely has an advantage, I call his contacts his hundred “river guides”! 😄
Moonbase Capital: Long-term, what’s your vision post-acquisition?
Constantin: We’re focused on partnering with successful entrepreneurs and leveraging our analytics and networks alongside a strong investor base. Ultimately, value creation comes down to smart capital allocation, something beautifully articulated by Will Thorndike, one of our own investors, in his book “The Outsiders.”
Moonbase Capital: Any final advice for those considering launching a search fund in Poland?
Constantin: Take your time to deeply understand the market. Attend conferences, understand valuation expectations, familiarize yourself with local debt-financing practices, and build comprehensive databases of potential targets.
Michał: And carefully choose your investors—they’ll be your strongest allies through every step of this challenging but incredibly rewarding journey.
Moonbase Capital: Wonderful advice. Constantin, Michał, thanks for this engaging and insightful conversation.
Constantin: Thank you for having us!
Michał: Looking forward to updating you when we’ve found our Pegasus!
