
How Are ETA Investors Really Faring? Yale Has Some Answers
Search Party
Outro
David thanks guests and wraps the episode, inviting future updates on ETA research and practice.
ETA search investing is more "hits-driven" than previously thought, and aspiring Entrepreneurs-Through-Acquisition can face steep odds delivering a performance of more than one-times invested capital, according to new research out of the Yale School of Management.
This episode of Search Party features a lively, candid, deep-dive conversation about the findings of the new paper, "How Are Search Fund Investors Really Faring?" with two of its three authors: A. J. Wasserstein and Daniel Lazier. Also joining the conversation are Dustin Sellers, Managing Partner of ETA private equity firm Next Coast Legacy, and Search Party host David Snow.
A. J. Wasserstein is the Eugene F. Williams, Jr., Senior Lecturer in the Practice of Management at the Yale School of Management, and Daniel Lazier is a search fund entrepreneur and the founder of Skyline Crest Partners, a California-based search fund. Also contributing to the research was Jacob Thomas, the Williams Brothers Professor of Accounting and Finance at the Yale School of Management. (Access the full report here: https://som.yale.edu/sites/default/files/2025-10/How%20are%20Search%20Fund%20Investors%20Really%20Faring.pdf)
Among the topics of discussion:
Theories as to why some 58% of ETA investment outcomes are below a 1.9 multiple of invested capital (MOIC)
Why a broader pool of ETA investments does not necessarily lead to better returns
Why "high-status" ETA investors enjoy advantages in a hyper-competitive market
Why realizing at least one investment "gryphon" - defined as a MOIC of more than 10x - is so important to portfolio outperformance
Why dishonest sellers may be a cause of weak returns
Why ETA remains a major opportunity for entrepreneurially minded MBA graduates
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