Acquiring Minds

Self-Funded Search vs. Independent Sponsorship

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Jun 20, 2023
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ANECDOTE

Returned Search Fund Capital

  • Niklas James initially raised a traditional search fund but returned the capital.
  • He chose flexibility and autonomy, believing deal flow is the biggest bottleneck.
INSIGHT

Investor Reactions

  • Most search fund investors did not react when Niklas returned their checks.
  • One investor expressed disappointment, but reaffirmed their interest in his deal flow, highlighting the importance of deals.
ANECDOTE

From Oil and Gas to SaaS

  • Niklas initially focused on oil and gas deals, but struggled to find capital due to the industry downturn.
  • He later closed a deal on a SaaS edtech business, similar to a typical self-funded search.
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