Search Fund Terms: What an LP Nets at 2x, 3x, 5x
The same exit pays an LP a different amount depending on the structure. A waterfall model at 1.5x, 2x, 3x and 5x shows where terms matter and where they don't.
Free Guide: Foundational Guide to Self-Funded Search Investing
Resources / Research library
The foundational guide · Free download
The Foundational Guide to Self-Funded Search Investing
A comprehensive 24-page framework for evaluating and investing in entrepreneur-led acquisitions
Preview: acquisition & diligence timeline ↗
25-50%
Target IRR Range
3-5x
Typical Entry Multiple
$500K-$3M
Target EBITDA
Data-Driven Insights You Won't Find Elsewhere
Our guide includes proprietary market data, valuation benchmarks, and capital structure analysis drawn from hundreds of self-funded search deals. Understand the real numbers behind this emerging asset class.
What You'll Learn
Self-Funded Search Fundamentals
Understand the model, key players, and how it differs from traditional search funds
Investment Structures
Learn about capital stacks, equity allocation, and typical deal terms
Due Diligence Framework
A comprehensive checklist for evaluating searchers and target businesses
Risk-Return Analysis
Historical returns data, risk factors, and portfolio construction strategies
Market Data & Trends
Current market statistics, valuation trends, and deal flow analysis
Getting Started
Practical guidance on building deal flow and evaluating opportunities
Inside the Guide
Preview some of the charts and data visualizations included
Capital Structure Analysis
Purchase Multiple Ranges
Target EBITDA Ranges
Why Self-Funded Search?
Traditional Investing
- Efficient markets with compressed returns
- High minimums and long lock-ups
- Limited access to deal flow
- Passive involvement only
Self-Funded Search Investing
- 25-50% target IRR in inefficient markets
- Flexible check sizes from $50K
- Direct access to entrepreneur-operators
- Active involvement and value creation
“Self-funded search represents one of the most compelling risk-adjusted return opportunities in private markets today.
From Our Blog
Explore our in-depth articles on self-funded search investing:
- •What Is Self-Funded Search Investing? — A comprehensive overview of the model
- •7 Questions to Ask Before Investing in a Search Fund — Critical evaluation questions for LPs
- •Why Proprietary Sourcing Matters — How deal sourcing drives returns
by
Research-driven insights for investors in entrepreneur-led acquisitions. We publish data-backed analysis on self-funded search, SMB private equity, and lower middle market investing.
Sean SmithManaging Partner, Search Fund Ventures
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