Traditional Search Fund

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October 11, 2023

by a searcher from Seattle Pacific University in Shoreline, WA, USA

I am curious how the community would define a "traditional search fund". What is this and how does it compare to a non-traditional search fund?

I am personally seeking to fund an acquisition of a specific business type and size via a combination of an SBA loan, my own capital, and possibly capital from a partner.

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Reply by a searcher
from The University of Chicago in Chicago, IL, USA
Traditional implies raising from multiple sources to fund a search, then again for acquisition. Other than traditional would be self funded (not raising for search), or sponsored (raising from one investor with more infrastructure/support). Non traditional is a broad category though.

SBA is typically associated with self funded searches.
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Reply by an investor
in Toronto, ON, Canada
it seems like you are thinking about using multiple sources to get the deal done. I am curious to see if you have thought about financing part of the deal with a sellers note. I recently saw a post in which the seller took 20% on a note that would be on standby for 2 years.
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