Pau Search Fund Manifesto
Pau Search Fund Manifesto
Overview
I raised a search fund, drawing down the initial capital in September 2009 after originally writing my PPM in April and May 2009, (the months before I graduated HBS). I had been seriously considering raising a fund since September 2008 and in fall 2008 did a field study with a former unsuccessful searcher. The intention of this document is not to replicate anything that is in the excellent Stanford GSB reports but rather to give a personal perspective on the process and my decision making. The rationale for writing it is that I found the search process an emotional one with highs and lows, which as a single searcher is a responsibility that is best described as lonely. I made numerous mistakes, which in hindsight were an integral part of the process but which at the time I would disproportionately agonize over.
I successfully purchased a business in June 2011, a transaction for which the initial contact began in September 2010. It was a deal which at the time of closing was one that the investment group was extremely excited about. Ultimately the success of my search process will be defined by how well the deal performs, however the business ownership and leadership process is one far more extensively covered and studied in business school. The intent of this document is to focus on the relatively unique “search fund” fundraising and searching process.
The main reason for writing this document is that the search fund ‘community’ has been extremely generous with their time, encouragement and backing. I learned a lot from previous searchers who did not find a company to buy, or searchers for whom the process has not been a home run. These people extensively gave of their time and were a much more valuable resource to me than those who had extensive success. I spoke with 82 searchers both before fundraising and into the first year of the search.
As a perspective on me, I am not very academically smart and do not tend towards
Overview
I raised a search fund, drawing down the initial capital in September 2009 after originally writing my PPM in April and May 2009, (the months before I graduated HBS). I had been seriously considering raising a fund since September 2008 and in fall 2008 did a field study with a former unsuccessful searcher. The intention of this document is not to replicate anything that is in the excellent Stanford GSB reports but rather to give a personal perspective on the process and my decision making. The rationale for writing it is that I found the search process an emotional one with highs and lows, which as a single searcher is a responsibility that is best described as lonely. I made numerous mistakes, which in hindsight were an integral part of the process but which at the time I would disproportionately agonize over.
I successfully purchased a business in June 2011, a transaction for which the initial contact began in September 2010. It was a deal which at the time of closing was one that the investment group was extremely excited about. Ultimately the success of my search process will be defined by how well the deal performs, however the business ownership and leadership process is one far more extensively covered and studied in business school. The intent of this document is to focus on the relatively unique “search fund” fundraising and searching process.
The main reason for writing this document is that the search fund ‘community’ has been extremely generous with their time, encouragement and backing. I learned a lot from previous searchers who did not find a company to buy, or searchers for whom the process has not been a home run. These people extensively gave of their time and were a much more valuable resource to me than those who had extensive success. I spoke with 82 searchers both before fundraising and into the first year of the search.
As a perspective on me, I am not very academically smart and do not tend towards