Searchers prioritize investments in businesses that exhibit consistent growth patterns. These companies have demonstrated their ability to increase revenues, EBITDA, and market share over time. Their growth is often driven by mission critical products or services, and a deep understanding of their customer base. Despite market fluctuations and economic cycles, these companies have the resilience to maintain their upward trajectory.

Search funds usually target businesses operating in unique niches where they have established a competitive moat. This could be through proprietary technology, strong brand recognition, or exclusive partnerships that create barriers to entry for competitors.

Searchers primarily target B2B companies in non-cyclical industries with straightforward business models, low capital intensity, and healthy cash flows.

The majority of searchers graduate from top MBAs and choose to become searchers over other profitable career options.

Many search fund investors executed successful searches themselves and have invested in the asset class for decades. Even though searchers run the company, investors help by providing support and feedback on important decisions.

Aspiring searchers solicit advice from current searchers, investors, and operators, most of whom are happy to guide and mentor them.

There are close alignment of incentives between entrepreneurs and investors; searchers receive common equity vesting over time and tied to the company’s performance.

Company owners are usually older individuals seeking retirement, without a defined succession plan, and seeking the right steward of their legacy.

Target companies are typically smaller than PE acquired firms, are niche-focused, and operate in non-cyclical industries, so they remain insulated from broader political and macroeconomic risks.