Rollups HoldCos

July 19, 2023

by a searcher from Harvard University - Harvard Business School in Lafayette, CA, USA

Anyone have experience raising a traditional search fund to do a roll-up and/or holdco? Would love to get thoughts on 1) type of investors you have on your cap table and 2) what you conveyed in your PPM (i.e., level of detail?)

0 Likes

1 Reply

125 Views

Replies

Reply by a professional
from North Central College in Chicago, IL, USA

My firm and I have invested in smaller roll-ups and employ a similar strategy on our direct investments. It is difficult to raise outside capital for these strategies unless you have experience doing it. Roll-ups are extremely hard to pull off and to pull off successfully you generally want to be able to acquire the largest available player in the niche/ space/ geography. If you do want to go this route I would suggest finding a very unique niche that lacks PE money and try to consolidate quickly.

Join the discussion