2026 Stanford ETA Primer

I just finished reading the 2021 and 2026 Stanford “Primer on Search Funds” side by side. Whereas the 2021 Primer felt like: “Here is a niche entrepreneurial path for ambitious operators.” The 2026 Primer feels more like: “Here is an institutionalized lower-middle-market asset class.” 3 things stood out: • The ecosystem became dramatically more professionalized. The new Primer formally introduces concepts like “catch-up” provisions, “super carry,” “board carveouts,” MOIC-linked vesting, and even a new 70-term glossary. • Sourcing is now much harder. The 2026 Primer openly acknowledges that: “Searchers have seen seller email response rates decline…” And: “Genuine and differentiated connection with potential sellers becomes more important…” That’s a pretty major admission from Stanford. Spray-and-pray outreach is becoming less effective. • Edge increasingly is coming from trust, credibility, relationship building, industry expertise, operational capability, seller psychology, and post-close execution. That’s a very different skill set than simply finding a company at 4x EBITDA and levering it up. Curious whether others in the ETA ecosystem felt the same shift reading the new Primer.