Sponsors/Investors that back Search Funds

Are there any dedicated PE firms or other organizations that will back founders for search funds in a special situation in the consumer industry (USA)?

2 Comments
 

Based on the most helpful WSO content, there are indeed firms and organizations that back founders for search funds, especially in special situations. However, the specific names of these firms or organizations are not mentioned in the context.

These backers typically provide "search capital" which finances a 1-2 year search period during which the founders look for a business to buy. This approach has been likened to a VC approach where money is spread across a wide range of searchers, allowing them to either succeed or fail, with the hope of a few major successes.

In terms of industry, the context does not provide specific information about the consumer industry in the USA. However, it does mention that there are broad opportunities available, many of which can be financed at reasonable rates through the U.S. government's SBA program.

Remember, it's always important to do your own research and due diligence when considering such a path.

Sources: Any PE people considered leaving to pursue search fund/entrepreneurship paths?, Independent/fundless sponsor and Family Office surge, Are top MFins target programs for Private Equity firms?, Traditional Private Equity vs. Special Situations Investing

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

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