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.