Age of Searchers increasing?

searcher profile

February 20, 2023

by a searcher in Newport Beach, CA, USA

With Private Equity moving downstream into the lower middle market, it seems as though I am seeing more seasoned individuals, moving into the search fund model that would previously be considered Unfunded or Independent Sponsors. Is this a real trend or something I am solely seeing locally in my region?

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commentor profile
Reply by a searcher
from University of Calgary in Calgary, AB, Canada
Thanks for the tag Luke; in my case more situational. Introduced to search concept from a local HBS grad earlier in my career (~2008) while is I was in PE, socialized the concept with HNW indiviudals I knew at the time, all generally Energy focused (am in Calgary, CAN) and they didn't understand the model and garnered little interest. Ultimately sought operational exposure beyond PE, moved into Corp Dev then President in succession situation in a PE backed entity. Taking that experience, partnered initially to look to raise a bespoke PE fund for lower middle market buyouts, got a deal under LOI but didn't have interest in the fund concept, pivoted to search crowd to attempt close, great company, unfavorable sector. My sense is that in mid 40's I would be at the older end, but small sample set of people I have connected with through searchfunder, or locally, is weighted to###-###-#### But ETA in Western Canada still in it's infancy relative to Eastern Canada or the US. ETA only starting to make it onto syllabus for MBA's here.
commentor profile
Reply by a searcher
from Duke University in Alpharetta, GA, USA
This trend will accelerate - there's growing disenchantment at the top of large organizations, particularly after the first three years. The turmoil of 2020 taught senior corporate managers that everyone is expendable in a crisis, even long time employees. The inflation of 2021 was rarely matched by equivalent wage increases at the top levels, especially for long term staff who nobody expected to leave. The market declines of 2022 just blew up their stock options. And we've been trashing healthcare coverage and retirement plans for years. So why should they stay? There's not pot of gold, just an ignoble walk out the door escorted by security...

Meanwhile the world of search / independent sponsor PE is steadily getting it's act together, evolving the support systems and enabling partners that make this a viable path for a rising general manager, offering better rewards than waiting for a C-level job that they'll never get...
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