Want to Build a Local Evergreen Fund Someday – Looking for Advice
Hey everyone,
I’m an undergrad currently working in private investing and wealth management, and I’ve been thinking a lot about what I want to build long term.
Someday, I want to launch an evergreen-style fund that focuses on buying and holding small businesses in Central Minnesota, especially around my hometown. The goal would be to run these businesses forever, not flip them or chase fast returns. I really want to prioritize taking care of the people, the customers, and the local communities while still growing solid, healthy companies.
It would be something like a small-town version of Berkshire Hathaway. I’d love to buy from owners who care about their legacy and want to see their businesses last. I’d keep debt low and focus on being a great operator and long-term partner.
I’d love to hear from anyone who: • Has experience with evergreen funds, permanent capital vehicles, or similar models • Has ideas for how to get something like this started with little or no capital • Knows how to source deals and build trust with small-town business owners • Has thoughts on long-term investors who might buy into this kind of vision
Even if you’ve just thought about this type of structure or know someone who’s tried it, I’d love to hear your take.
Thanks so much for any advice or ideas you’re willing to share.
Building a local evergreen fund is an ambitious and meaningful goal, especially with a focus on community and long-term sustainability. Based on the most helpful WSO content, here are some insights and advice tailored to your vision:
1. Evergreen Fund Structure and Benefits
2. Getting Started with Limited Capital
3. Sourcing Deals and Building Trust
4. Attracting Long-Term Investors
5. Operational Focus
6. Additional Considerations
Your vision of a small-town Berkshire Hathaway is inspiring and aligns with the principles of evergreen funds discussed in WSO threads. Start small, build trust, and focus on creating value for the businesses and communities you serve. Good luck!
Sources: Care for eachother, Care for the Community, Look to Grow, Evergreen Funds/Permanent Equity, Leave banking to start a PE fund?, Q&A: FIG ER to Consumer Growth Equity to Cannabis Startup, Starting your own Fund/Firm
You should look into Kanbrick, which was founded by a woman who led 4 different Berkshire businesses before starting her own fund. Pretty sure Warren Buffett walked her down the aisle at her wedding or something like that. It’s not as specific to investing in a locality like you are, but it echoes your desire of wanting to invest for decades+. You should think about making your medium/long-term goal launching a search fund. This path was initially really popular amongst MBAs and still is to an extent, but I’m seeing more and more former PE guys do so now. If you read up on this and want to do it, my advice is work in banking for a few years, then PE, save heavily, and then go out on your own. You could easily fund your search and deal entirely from savings if you find the right business, plus you probably could attract some additional outside capital from PE contacts you’ll have built up. You could still do the MBA post-PE before launching your search fund, but would only recommend this if you get a hefty scholarship. Regarding your comment on not wanting to be returns-driven, this is even more of a reason to aim to fully self-fund your search. Any outside money you take, aside from some wealthy family member potentially, will likely care about returns. If it’s all your money, you’re in control. Do a decent first deal and you could essentially just launch your own small family office that invests the way you’ve describe. This could all easily fail and you end up unemployed after a failed search or after getting a deal done and then having your equity wiped out. But if you want to look into your idea more, the above are good areas to start researching.
Would echo this. Specifically encourage looking into “self-funded” search models, which I think meet your goals more amply in minimizing the needed investor equity (more congruent with a longer hold). You can structure this pretty creatively with little to no cash on your first local business? Using SBA debt to continue expanding with further acquisitions.
Lots of good reading here you might consider, specifically Buy then Build and the HBR Guide to Buying a Small Business.
I would guess you might know this already but Granite Partners is doing this exact thing from Central MN / Great MN. I assume the SJU in your name means you’re a Johnnie and you should use that connection to talk with some of the team at Granite. They started as a traditional buyout fund and moved to evergreen after that first fund closed.
Modi officiis autem consequatur natus. Debitis veritatis autem aliquid. Maiores et officia est occaecati autem.
Amet recusandae inventore enim animi. Et quidem at dolor.
Eius qui quod ut ipsam. Dolore quia consectetur quis consequatur reprehenderit consequatur. Odio sunt architecto dolorem est aut.
Praesentium qui quasi doloribus blanditiis exercitationem debitis tempora. Excepturi nisi repellat sit deserunt quaerat. Ullam recusandae recusandae cumque id. Fuga iusto qui quisquam sint.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Vel nostrum assumenda odio maxime in cupiditate facilis. Rerum nam sit ut aut et error minus. Neque dolorem ipsum sunt mollitia. Dolore quidem voluptatum voluptas mollitia sit aut. Voluptatem quis est veniam cupiditate ipsa aut. Explicabo consequatur earum aut sed est ut doloribus et.
Asperiores ut sit et totam deleniti reprehenderit. Pariatur aut nobis rerum esse. Dolorum cumque culpa non qui. Minus eius enim et repellat officia quia ut. Consequatur exercitationem dignissimos at eum.
Nostrum nisi voluptatem doloribus ipsam optio voluptas. Voluptatibus voluptas ipsum reiciendis qui non qui non. Voluptatibus rerum doloremque ut qui iste et. Enim commodi dignissimos omnis molestiae cumque. Quo enim quos facilis eligendi provident.