What is a search fund?
A search fund is an investment model where entrepreneurs raise capital to buy and grow a small-to-medium-sized business.
The life of a search fund consists of 4 steps:
The life of a search fund consists of 4 steps:
A search fund is an investment model where entrepreneurs raise capital to buy and grow a small-to-medium-sized business. The life of a search fund consists of 4 steps:
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Fundraise
Raise money from investors to finance the search and acquisition. This process typically lasts up to 2 years.
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Search & Acquire
Identify undervalued businesses with strong fundamentals and negotiate a strategic acquisition.
Grow
Scale operations, drive efficiency, and build long-term enterprise value.
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Sell
Sell the business and distribute profits.
FAQ
About MCP's Support
What type of support does MCP provide during the search phase?
How involved will MCP be after the acquisition?
Does MCP have expertise in specific industries?
How does MCP select entrepreneurs to back?
What characteristics does MCP look for in searchers?
What are the expectations for reporting and communication during the search and operation phases?
FAQ
For Investors
What types of businesses do search funds target?
What is the typical size of a search fund acquisition?
What are the risks of investing in a search fund?
What kind of returns can I expect from a search fund investment?
How long is the typical investment horizon?
Resources
Title
Year
Description
Access
2024 Search Fund Study
2024
The 2024 Search Fund Study reports on the financial returns and key qualities of search funds formed in the United States and Canada since 1984. This report updates the previous 2022 study with data through December 31, 2023.
Learn MoreInternational Search Fund Study 2024 - Selected Observations
2024
The 2024 Search Fund Study reports on the financial returns and key qualities of search funds formed in the United States and Canada since 1984. This report updates the previous 2022 study with data through December 31, 2023.
Learn MoreSearch Fund Team Building Survey Selected Observations
2023
This study examines the executive hiring and termination decisions of 40 search fund CEOs during their first two years post-acquisition. CEOs from various industry sectors and return profiles were surveyed in April 2023.
Learn MoreOn the Nature of Due Diligence in a Search Fund
Acquisition
Acquisition
2022
A primer exploring the action steps necessary for a successful due diligence
program
Learn Moreprogram
Title
2024 Search Fund Study
year
2024
description
The 2024 Search Fund Study reports on the financial returns and key qualities of search funds formed in the United States and Canada since 1984. This report updates the previous 2022 study with data through December 31, 2023.
Access
Learn MoreTitle
International Search Fund Study 2024 - Selected Observations
year
2024
description
The 2024 Search Fund Study reports on the financial returns and key qualities of search funds formed in the United States and Canada since 1984. This report updates the previous 2022 study with data through December 31, 2023.
Access
Learn MoreTitle
Search Fund Team Building Survey Selected Observations
year
2023
description
This study examines the executive hiring and termination decisions of 40 search fund CEOs during their first two years post-acquisition. CEOs from various industry sectors and return profiles were surveyed in April 2023.
Access
Learn MoreTitle
On the Nature of Due Diligence in a Search Fund
Acquisition
Acquisition
year
2022
description
A primer exploring the action steps necessary for a successful due diligence
program
program
Access
Learn More