Is there lack of capital in ETA?

profile

February 11, 2026

by a searcher from University of Florida in Orlando, FL, USA

I recently heard on a podcast that one investor group is reviewing more than one deal per day. From an LP’s perspective, that level of deal flow is nice. It allows them to be highly selective and focus only on the highest-quality opportunities. But for searchers and independent sponsors on the other side of the table, it’s tough. It makes you wonder how many solid deals simply never make it to closing because capital is constrained or investors are overwhelmed with options. As someone preparing to raise equity for a deal, the current environment feels increasingly competitive — and, candidly, a bit discouraging. Is there a lack of capital in ETA?
0
26
330
Replies
26
commentor profile
Reply by an investor
from Wesleyan University in Dedham, MA, USA
There has never been more capital in ETA worldwide, billions literally. One could make the argument that there is too much capital in ETA at this point as returns are very much under pressure and deals are getting done that probably shouldn’t be. And worst of all IMO is that there are many getting into search who aren’t serious about and have an arrogance that would have been unheard of 10 or 20 years ago. It used to be that it was as really really hard to get into search so only the very best got funded. I am all for growth and opening the category to all who are interested in trying their hand at it, but remember, like anything important, this shit is hard.
commentor profile
Reply by an investor
from Columbia University in Larchmont, NY, USA
I've been a search investor for 6-7 years. During that time, the number of prospective searchers seems to have exploded. Sadly, IMO, the quality has fallen. Not sure what has drawn so many prospective new searchers to the space, but they need to do more soul-searching and understand how hard this path is.
commentor profile
+24 more replies.
Join the discussion