Story perspectives
Search Funds Thrive: 35.1% Returns Amid Job Instability
9/6/2025
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Story summary
- Search funds, established in 1984, enable capital raising for acquiring and operating small businesses, reducing startup risks.
- A 2024 Stanford study identifies four search fund stages: capital raising, company searching, operation, and exit.
- In 2023, North America saw 94 new search funds, with 59 launched internationally, amid job market instability.
- Entrepreneurs like Jason Jackson have overcome challenges, including fraud, to achieve notable returns.
- Search funds provide a mentorship model, connecting investors with aspiring business owners.
- They yield an internal rate of return of 35.1%, with a 4.5 times return on investment.
