Our approach
The Search Fund model has posted outstanding returns for over 30 years
We act as a close thought partner, always available to provide guidance, advice and best practices to maximize the entrepreneur’s chances of sucess
Fundraise
You need to be thoughtful in your fundraising process, looking for the right investors to maximize your chances of success during the search phase
Get to know the ecosystem
Ample resources available
Talk to Entrepreneurs
Learn from their experience
Prepare your pitch
Align yourself with a Search Fund model
Think of the big picture
Real benefit comes from delivering value in the operation
Find the right investors
Local knowledge, network access, capital and guidance
Know your market
Every region is different
Search
Apply proven processes and leverage your investors' to find the best company. Be patient and objective in your analysis, as you only have one opportunity
Establish a process
Needs to be methodical and implement best practices
Be driven
Time is of the essence, so focus on getting traction
Be objective
Objectively analyze the attractiveness of each company
Be decisive
Avoid confirmation bias and get comfortable rejecting deals
Keep investors informed
Let us know your progress and how can we help
Listen to your investors
Vast experience in industries, regions and negotiations
Acquire
Execution is a differentiated characteristic in successful Search Funds, as a result requires a unique commitment and conviction from the entrepreneur
Committed to your decision
Difficult to have 100% of investors aligned
Be thorough in your analysis
Success lies in the details
Leverage your investor base
Differentiated network and resource of knowledge
Get the best deal terms
Maximize the opportunity of a successful outcome
Pitch the best opportunities
Pursue each opportunity aggressively
Perform an exhaustive due diligence
Identify all potential risks and develop a mitigation plan
Grow
A Search Fund business is not a turnaround opportunity, it is a solid company that requires the drive of an exceptional entrepreneur to exploit growth and create value
Have a clear 100-day plan
Well-planned transition period is key for success
Establish a solid Board of Directors
Get advice and guidance from business experts
Institutionalize the business
Implement accountability across the organization
Develop a detailed growth plan
Identify opportunities and capitalize on them
Fill the talent gaps
Solidify management to support growth plan
Reach maximum operational efficiency
Reduce cost, monitor KPIs and implement best practices
Exit
Transitioning the business to a new owner at the right valuation is a daunting task
Be open to any approach
Opportunities may arise at unexpected times
Understand the potential
Objectivity is key in evaluating offers
Utilize the expertise of your Board
Directors will analyze and give feedback on any approach
Talk to your shareholders
Understand your investors' expectations
Liquidity is necessary
Most of your net worth will be tied to the equity
Transition to new role
There are plenty of opportunities following an exit
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Investment Philosophy
Partnering the best human capital with solid businesses
Our holistic evaluation approach consists of quantitative and qualitative analysis in order to find sound investments with significant value-creation potential
The "Jockey"
We follow a rigorous screening process to partner up with the best entrepreneurs, strictly investing in the ones that fit the profile we have identified
The "Horse"
We focus on healthy companies with tremendous growth potential, all analyzed through a rigid set of characteristics to ensure the best possible outcome
- Growing sectors with macroeconomic tailwinds
- Minimal regulatory exposure
- Preferably B2B model
- Stable sources of recurring revenues
- Diversified client and supplier base
- Simple operations
- Attractive unit economics with low capital intensity
- EBITDA margin above 15%
- Proven top-line growth momentum
- Commitment to positive environmental impact
- Consideration of all stakeholders
- Measurable social impact in its community
Unlocking value
Proven strategy to deliver significant value-creation
Our approach is tailored to each entrepreneur and will systematically add-value throughout the search phase and holding period
Access our network
Lead investor role in SHA negotiations
Best practices for the search process and deal structure
Sounding board and clear real-time advice
Support on investor communication strategy
Advice on LOI and SPA negotiations
Guidance and involvement in due diligence topics
Participation in conversations with potential sellers
Help in recruiting efforts of key personnel
Assist on strategic development and growth initiatives
Implementation of best corporate governance practices
Recommendations on the divestment process