A Different Approach to Search Funds
What is a Search Fund?
Traditional Search Funds
Search funds are vehicles for entrepreneurs to raise funds from investors interested in making private equity investments. Most importantly, they provide capital access for promising managers to become entrepreneurs through acquisition.
Traditional search funds are usually created by entrepreneurs with limited to no operational experience, and raise a fund to target the acquisition company. The fund may or may not find the target company
The origins of the search fund are often traced back to H. Irving Grousbeck, a professor at Stanford University's Graduate School of Business, who originated the concept in 1984. Since then, it is estimated that 627 traditional funds have been or are currently being formed, with 198 operating currently. The bulk of successful search funds have been raised by alumni of elite MBA programs with access to strong private equity networks. Stanford University has documented more than 177 search funds.
Why we are different
The FamDos approach
FamDos was started by two Stanford University’s Graduate School of Business graduates. The main difference between our approach and a traditional search fund are:
Unlike traditional search funds FamDos does not raise funds to look for the target company. Every cost of finding the company is funded by our own capital
Both founders of the fund sum up more than 45 years of operational experience in more than 20 countries, and across industries like, Cement, Steel, Glass and Chemical manufacturing.
Target companies fluctuate between $5 million and $50 million USD, and we take full management control from day one.
We only target companies with net gains, but with operational inefficiencies or those which need growth capital or international expansion.
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