A search fund is an investment vehicle through which its founders search for, acquire, and operate a single business. These businesses generally have attractive recurring revenue characteristics and strong profitability metrics. The principals of these Search Funds – called “searchers”- are usually (but not always) recent graduates of top business schools here in the U.S. and abroad. Despite their relative youth and inexperience, searchers as an asset class have generated exceptional long term returns: according to the Stanford Center for Entrepreneurial Studies, the aggregate IRR of the search fund asset class through year-end 2015 was 36.7%, and the aggregate multiple on invested capital was 8.4x.
The Managing Directors of Housatonic Partners helped to pioneer the search fund community, and we have backed over one hundred search funds over the past two decades. We enjoy the unique opportunities we have through search funds to work with young – often first-time – entrepreneurs as they evolve into emerging business builders and grow dynamic companies that are potential or eventual recapitalization candidates for our funds.
Should you have an interest in learning more about our search fund efforts, please contact firstname.lastname@example.org.