
This piece breaks down why search funds have quietly become one of private equity’s most talked-about niches for investors.
- Looks at why investors are drawn to search funds, one of private equity’s most talked-about niches
- Staged capital commitment — a small amount for the two-year search, a larger round only once a target is found — limits an investor’s downside before a deal is even struck
- Highlights the model’s historically strong risk-adjusted returns
- Investors get direct involvement via a board seat at the acquired company
- Notes the asset class remains under-the-radar and uncorrelated with public markets