How do investors deal with their portfolio competing in the same space?

searcher profile

January 26, 2025

by a searcher in Lisbon, Portugal

I was wondering how serial investors in search funds manage searchers in their portfolios competing directly in the same regions or sectors.

I assume many professional investors have policies on how to handle potential conflicts, however there might be some grey areas. This is especially true if the investor also has an active role in sourcing deals for its searchers.

Anyone had to deal with this issue? Would love to hear some perspectives here.

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commentor profile
Reply by an investor
from INSEAD in Milan, Metropolitan City of Milan, Italy
Interesting, sure. So far it happened to us a few times but never direct competitors. NDAs may be in place at times but nothing major. As far as I have seen, there seems to be more cooperation than competition in general, and as a consequence information that may be useful for all but not damaging for anbody can be shared and bring added value.
commentor profile
Reply by a searcher
in London, UK
Interesting topic!

I have heard of searchers putting in place confidentiality agreements in competitive processes where they came across other searchers with whom they shared investors. But, others might have direct experience of this and can confirm.

In any event, some sort of information barrier, sounds reasonable.
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