Join the GEA this Wednesday, January 26th, from 12:30 pm to 2:00 p.m. for a case study workshop on Search Funds taught by Rick Hunt and Bret Fund. The location has not been determined yet, an email will be sent out this week with more information. Lunch will be provided by Jimmy John’s Subs. See below for an overview of Search Funds.
Make sure to RSVP at http://www.surveymonkey.com/s/YZSXX32 if you plan to attend.
In this workshop we will explore the use of Search Funds and use the case method to review an actual scenario of application. Please review the Stanford case attached titled “Aero Logistics.” This will enable all of us to be up to speed on the basics of Search Funds so that we can jump write into a deeper discussion.
Conceived in 1984, the search fund is an investment vehicle in which investors financially support an entrepreneur’s efforts to locate, acquire, manage and grow a privately held company. The model offers relatively inexperienced professionals with limited capital resources a quick path to managing a company in which they have a meaningful ownership position. In a search fund, capital is raised in two stages: (1) to fund the search (“search capital”) and (2) to fund the acquisition of a company (“acquisition capital”). The search capital is used to pay the search fund principal(s) a modest salary and cover administrative and deal-related expenses over a two to three year period while he (they) search for an acquisition. Once a target acquisition is identified and negotiated, the search fund entrepreneur(s) raises the acquisition capital to purchase the company. (Source: Stanford GSB)