Capital & Corporate examined how the model connects experienced entrepreneurs with investors, and why Spain has become one of the leading markets globally.
We were delighted to collaborate with Capital & Corporate on an article published in their magazine. We agree with them that search funds are a fascinating asset class, not only for investors but for entrepreneurs around the world.
The article, published by a reference title for private equity and M&A professionals in Spain, explains to professional investors how the search fund model connects experienced entrepreneurs with investors, and how it is emerging as a new asset class for investing in SMEs.
Positioned by many somewhere between venture capital and traditional private equity, search funds have offered average returns of 30% by investing in operational companies with proven business models. With over forty 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 piece, Arada Capital Partners — as an international institutional investor present across several geographies — discusses the advantages of the model and why it is a compelling vehicle for both investors and highly qualified entrepreneurs.