In this new interview conducted by Capital & Corporate we delve into how Search Funds offer various advantages to both investors and searchers, and why are Search Funds becoming a stablished asset class.
Historically, investor returns have exceeded 30%, outperforming comparable private equity asset classes. The sector is experiencing significant growth, allowing investors to build diversified portfolios and allocate substantial amounts of capital. In addition, Search Funds allow investors like Arada Capital Partners SCR to play a more active role in the companies in which they invest, leveraging their experience and expertise.
The Search Funds model offers clear advantages to searchers. First, it allows them to own, manage and grow an established company. Secondly, seekers can benefit from the guidance and support of experienced investors. Finally, they have the opportunity to earn a significant share of the total capital while aligning their objectives with those of the investors.
We are delighted to have been able to collaborate with Capital & Corporate on the publication of this article in the latest issue of their magazine. We agree with them that Search Funds are a fascinating asset class, not only for investors, but also for entrepreneurs around the world.
The below article published by Capital & Corporate, a reference for private equity and M&A professionals in Spain, explains to professional investors how Search Funds connects experienced entrepreneurs with investors, and how this model is emerging as the new asset class for investing in SMEs.
Positioned by many somewhere between venture capital and traditional private equity, Search Funds offers average returns of 30% by investing in operational companies with proven business models. With over 40 registered search funds, Spain is positioning itself as one of the leading markets globally, thanks to its strong presence in the low middle market.
In the article, Arada Capital Partners, as an international institutional investor with presence in various geograhies, discusses the advantages of the Search Fund model and why it is a very interesting vehicle for both investors and highly qualified entrepreneurs.