Stanford 2024 Search Fund Study Highlights

The latest Stanford University Graduate School of Business 2024 Search Fund Study, which reports on the outcomes of 681 search funds formed in the US and Canada since 1984, highlights the ongoing growth of the search fund community driven by record numbers of searchers and investors. Key takeaways include:

• Strong Returns: The internal rate of return (IRR) was 35.1%, with a return on investment (ROI) of 4.5x.
• Activity Trends: A record 94 core search funds launched in###-###-#### Company acquisitions decreased by 11 to 29 from a peak in###-###-#### The median purchase price for operating company dropped to $14.4 million.
• Capital Investments: $682 million was invested in core search funds and acquisitions in###-###-#### , a decrease from $776 million in the previous period###-###-#### ).
• Searcher Demographics: Younger searchers dominated, with 79% aged 35 or younger. More women participated, and a diverse range of business schools were represented.

We eagerly anticipate the IESE Business School International Search Fund Study for insights on other countries. For those unaware, IESE Business School will host the 6th International Search Fund Conference on October 10-11, and the team at Arada Capital Partners SCR is excited to attend!

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