The recently published Stanford Search Fund Primer 2026 documents the significant evolution and professionalization of the search fund model over the past decade.
Key Trends (Stanford 2018 Primer vs. 2026 Primer):
- 681 search funds globally (vs. 325 in 2018)—a 109% increase that reflects the model’s growing validation
- 35.1% historical IRR with 4.5x MOIC— indicating MOIC multiple compression and higher IRR, driven by earlier exits or liquidity events.
- 20-month average search period—down from 23 months, reflecting greater efficiency in the search phase.
- $5-10M typical acquisition size—acquisition capital has slightly grown
The data confirms what we observe in practice: search funds have evolved from a niche MBA pathway into a recognized strategy for acquiring and scaling quality businesses with strong fundamentals, while also providing a solution to the succession challenge faced by SMEs globally.
Link to full document – Stanford Search Fund Primer 2026
At Arada Capital Partners, we are committed to these evolving best practices as a professional, internationally-focused search fund investor. We partner with exceptional entrepreneurs across geographies, providing not only capital but strategic guidance and operational support to drive sustainable, long-term value creation.
