Adding a Third Partner to Our Self-Funded Search - Pros and Cons?

April 28, 2025

by a searcher in New York, NY, USA

Hi everyone, My partner and I are both ex-PE professionals currently running a self-funded search. We’re considering bringing on a third person - a friend of my partner’s with a strong private equity background - to help manage the growing workload and eventually divide responsibilities post-close (across ops, finance, and M&A). I’m curious if anyone has experience running a search with three partners instead of two. Besides the obvious dilution, what pitfalls should we be aware of? Are there advantages to having a third person that we might be overlooking? Would really appreciate any thoughts or lessons learned. Thanks!

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Reply by a searcher
from University of San Diego in San Diego, CA, USA

Bringing on a third partner can absolutely work—but the key is designing the people infrastructure with intention from the start. When you’re building a leadership team pre-close, you’re not just dividing up tasks; you’re shaping the culture, decision-making model, and operational rhythm that will carry into the company post-acquisition. Some things to consider beyond dilution: • Role clarity is essential. If all three of you bring PE backgrounds, it’s easy to fall into overlapping strengths without clear swim lanes. Defining who leads what—and how decisions will be made when perspectives diverge—will save you later friction. • Cultural alignment becomes more complex with three voices. Shared values and operating styles matter even more when you’re setting the tone for an acquired team. • Future org design: If you’re planning to step into executive roles post-close, think now about how your presence as a trio will be perceived by employees and how you’ll complement or rebuild the existing leadership structure. The upside of a third partner is real—especially if the person brings fresh energy and deep capability. Just be sure the partnership isn’t just additive on paper, but strategically aligned for the next chapter.

Reply by a professional
from The Johns Hopkins University in Basking Ridge, NJ 07920, USA

I have thoughts, but they are situation specific. Happy to brainstorm if you like, but good luck. If you want to chat, feel free to DM.

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