Search Funds in Spain: Professionalization and Strategic Investment Driving Mid-Market Transformation
October 13, 2025
by an investor from IESE Business School in Calle de Núñez de Balboa, 120, 28006 Madrid, España
The Search Fund ecosystem in Spain is undergoing a stage of unprecedented maturity and expansion, positioning itself as a real alternative for professionals seeking to combine investment with hands-on operational management of private companies. This was reflected at the recent forum organized by CMS Albiñana & Suárez de Lezo, which brought together some of the country’s most prominent investors alongside seasoned searchers who have completed the full investment cycle.
The first panel, moderated by Ignacio Zarzalejos, featured industry leaders including ^redacted (Arada Capital Partners), ^redacted (Aurica), ^redacted (JB46 Partners), and ^redacted (Alza Capital). All panelists agreed on a crucial point: the profile of the searcher—this hybrid figure between entrepreneur and investor—must be shaped by energy, humility, and a long-term commitment. Investors are looking for individuals capable of persevering day after day to find the right target company, aware that the process demands adaptability and resilience. Ambition alone is not enough; the searcher must demonstrate deep involvement and genuine conviction for the project.
Arada Capital Partners positions itself with a hands-on, professional approach and active support that extends far beyond mere financial investment. As explained by Javier Puig, Arada Capital Partners seeks to support teams not only at the board level but, when needed, in the operational day-to-day, providing experience, strategic vision, and constant backing that enables orderly, sustainable growth of acquired businesses.
The Spanish market, as acknowledged by participants, has seen a significant increase in competition. Whereas a few years ago it was easier to find attractive opportunities, today business owners may receive dozens of proposals from searchers interested in their companies. In this context, the differentiated positioning of professional investors is crucial, as is the ability to identify the sectors with greatest potential—software, healthcare, and education, favored for their recurring revenues and lower capital requirements. At the same time, recent successes and setbacks have provided important lessons, from deals achieved in competitive sale processes and successful growth strategies, to situations where losing key team members presented major challenges. Innovative models, such as hybrid ETA vehicles, are also gaining ground, expanding the horizons beyond the traditional Search Fund approach.
The second panel, focused on personal experiences, featured ^redacted (Espiral MS), ^redacted (Asta Capital), ^redacted (Relevian), and ^redacted (Albor Capital), moderated by Ignacio Cerrato. The searchers emphasized the unique opportunity provided by this entrepreneurial path, combining autonomy with the backing of a community of aligned investors. Fundraising emerged as a recurrent theme: true leadership, they stressed, means convincing investors not just of a company’s potential, but of the searcher’s personal conviction and capability to drive the project forward.
The search for the ideal company is not linear; there is no perfect business, and it is critical to quickly rule out sectors with insufficient fit, adapting pragmatically to what the market offers. The real challenge, however, starts after the acquisition: building a strong company culture, aligning the team around a shared vision, and growing in an organized, strategic manner. Learning and resilience are, in the end, even more important than initial negotiations.
The forum made it clear that the Search Fund has evolved in Spain from an emerging curiosity into a professionalized and effective mechanism for transforming the mid-market and micro-cap sectors. Investors like Arada Capital Partners—bringing strong expertise and active commitment—are at the forefront of this evolution, driving a more competitive and sophisticated industry in which close collaboration between searchers and dedicated funds is the key to creating lasting value and ensuring sustainable success.
The first panel, moderated by Ignacio Zarzalejos, featured industry leaders including ^redacted (Arada Capital Partners), ^redacted (Aurica), ^redacted (JB46 Partners), and ^redacted (Alza Capital). All panelists agreed on a crucial point: the profile of the searcher—this hybrid figure between entrepreneur and investor—must be shaped by energy, humility, and a long-term commitment. Investors are looking for individuals capable of persevering day after day to find the right target company, aware that the process demands adaptability and resilience. Ambition alone is not enough; the searcher must demonstrate deep involvement and genuine conviction for the project.
Arada Capital Partners positions itself with a hands-on, professional approach and active support that extends far beyond mere financial investment. As explained by Javier Puig, Arada Capital Partners seeks to support teams not only at the board level but, when needed, in the operational day-to-day, providing experience, strategic vision, and constant backing that enables orderly, sustainable growth of acquired businesses.
The Spanish market, as acknowledged by participants, has seen a significant increase in competition. Whereas a few years ago it was easier to find attractive opportunities, today business owners may receive dozens of proposals from searchers interested in their companies. In this context, the differentiated positioning of professional investors is crucial, as is the ability to identify the sectors with greatest potential—software, healthcare, and education, favored for their recurring revenues and lower capital requirements. At the same time, recent successes and setbacks have provided important lessons, from deals achieved in competitive sale processes and successful growth strategies, to situations where losing key team members presented major challenges. Innovative models, such as hybrid ETA vehicles, are also gaining ground, expanding the horizons beyond the traditional Search Fund approach.
The second panel, focused on personal experiences, featured ^redacted (Espiral MS), ^redacted (Asta Capital), ^redacted (Relevian), and ^redacted (Albor Capital), moderated by Ignacio Cerrato. The searchers emphasized the unique opportunity provided by this entrepreneurial path, combining autonomy with the backing of a community of aligned investors. Fundraising emerged as a recurrent theme: true leadership, they stressed, means convincing investors not just of a company’s potential, but of the searcher’s personal conviction and capability to drive the project forward.
The search for the ideal company is not linear; there is no perfect business, and it is critical to quickly rule out sectors with insufficient fit, adapting pragmatically to what the market offers. The real challenge, however, starts after the acquisition: building a strong company culture, aligning the team around a shared vision, and growing in an organized, strategic manner. Learning and resilience are, in the end, even more important than initial negotiations.
The forum made it clear that the Search Fund has evolved in Spain from an emerging curiosity into a professionalized and effective mechanism for transforming the mid-market and micro-cap sectors. Investors like Arada Capital Partners—bringing strong expertise and active commitment—are at the forefront of this evolution, driving a more competitive and sophisticated industry in which close collaboration between searchers and dedicated funds is the key to creating lasting value and ensuring sustainable success.
from IE Business School in Madrid, España
from IESE Business School in Barcelona, España