Traditional Search Funds - Good or Bad?

professional profile

November 06, 2024

by a professional from The University of Chicago - Booth School of Business in Chicago, IL, USA



Hi amazing search fund community!

I am a former traditional searcher as well as an entrepreneur. I have exited 2 businesses, have 2 businesses still running, and also serve as the CSO of a family office that manages more than 30 portfolio companies. I am working on a book and ready to discuss some of the flaws of traditional search funds with my media friends. I've been a contributor to CNBC, Forbes, Inc, Huffpost, and many more.


I wanted to see if any investor, vendor partner, searcher, operator, etc, would be interested in helping me with the following topics to better round out the book.


Why Traditional Search Fund CEOs get fired?

What's up with 33% or more Search Fund CEOs getting fired or forced out?

Is the CEO really a CEO or just a custodian of the business in search funds?

What's up with nonvotable shares for the search fund CEO?

Do board members/search fund investors treat minority or women CEOs differently?

CEO Termination rate based on race, gender

Acquisition rate based on race/gender



What is the true value-add of search fund investors?

How will the traditional search fund model evolve

Should the search fund economics change?

What's up with the forced buyback clauses for investors that don't participate in an acquisition? Why does this matter?

What is the searcher IRR vs investors?

What do CEOs do after they get fired?

Why do so many CEO not talk about their termination and what's their story?

What is the separation agreement like?

Why do certain investors have commitment issues during PRN and other deals?

What is the search fund mafia and why it matters for your traditional search?

What are some questions I should add? Who are some folks that I should interview? Please ping me and I'd love to chat.


Kevin


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commentor profile
Reply by a searcher
from Roosevelt University in Boston, MA, USA
I have opinions on some of the questions you ask but not much data. The people most likely to answer your questions with data or at least valuable anecdotes are smaller search fund investors (but not the search fund mafia) and/or Search CEOs post-exit. They would be able to comment on their interactions without fear of repercussion. IMO I would also reword your questions as they "lead the witness." They seem to conclude that searchers are being screwed which is not always the case.

"The world is full of fools, and he who would not see it would be one of them." – Nicolas Boileau
commentor profile
Reply by a searcher
in London, UK
What a fun and important mission you're on. Happy to talk anytime, here's my email redacted - I'm exposed to UK and US search fund space and relative target market
commentor profile
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