Search funds invest in companies too small for traditional private equity firms, and too mature for venture capital firms.
Highly profitable track record:
According to the most recent Stanford University case study, total returns for original investors in first-time search funds averaged 52% IRR.Most Recent Stanford University Case Study on Search Funds, 2007
Commercial and industrial lending by banks, the lifeblood of small and medium-size businesses, has dried up, falling 13% over the past 12 months-WSJ.Wall Street Journal Article, 10/31/09
Tested Investment Vehicle:
The first search fund was founded in 1984. Since then, over 100 search funds have been formed. New York Times Article, 3/12/2009