Hybrid of Traditional Search and Independent Sponsor Structures?

July 21, 2025
by a searcher from The University of Chicago - Booth School of Business in Santa Clara, CA, USA
Hi all,
I am looking to understand if there are investors who support flexible structures that combine elements of a traditional search fund with an independent sponsor model.
Specifically, I am interested in learning if investors have provided search capital to cover sourcing and diligence efforts while allowing the search to be run as a deal-by-deal independent sponsor platform post the first acquisition instead of requiring the principal to step in as the operator.
- Are there examples where the search fund evolves into a small deal-by-deal PE platform with carry, fees etc?
- How does governance and economics get structured in such a model?
Would love to hear from investors or searchers who might have followed a similar path.
from Tufts University in Medfield, MA 02052, USA
from Harvard University in Calgary, AB, Canada