Exploring the Traditional Search Fund Model

The traditional search fund model is a structured approach to acquiring small businesses, typically involving a searcher who raises capital from committed investors. It usually spans a period of 24 to 30 months, enabling the searcher to source and evaluate acquisition opportunities. Investors fund the operating expenses during this search phase, giving them the option to invest further during the acquisition phase if they are satisfied with the searcher's performance. This model is attractive because it combines the venture capital and private equity frameworks, allowing investors to support a searcher without a significant initial financial commitment.