IESE vs Stanford: Two 2026 Search Fund Studies Side by Side
Stanford and IESE 2026 search fund studies disagree on acquisition rates and returns, but agree on what matters: speed to a first LOI and a second searcher.
Institutional-Grade SMB Investing: Free Research Guide
Institutional-Grade SMB Investing
Comprehensive research on the self-funded search asset class — backed by 40 years of data and 681 fund track records
35.1%
Average IRR (Stanford, 1984-2023)
4.5x
Overall ROI Across 681 Funds
$7.4T
Baby Boomer Business Assets
Research Sources
Search Funds vs. Traditional PE
What the Research Shows
Proven Track Record
681 search funds tracked since 1984. 35.1% IRR and 4.5x ROI across all funds. 42.9% IRR for exited companies.
Institutional Governance
Independent sponsor structures provide cleaner alignment: 82% target $5-50M EV, 73% require sponsor equity contribution.
Portfolio Approach
Data shows diversified portfolios of 20-30 positions produce more reliable outcomes than concentrated bets.
Structural Protections
Deal terms converging toward lower leverage, cleaner structures, and better LP alignment across the asset class.
What Institutional Investors Say
The data on self-funded search is compelling. We've allocated 5% of our alternatives sleeve to SMB co-investments.
Family Office CIOMulti-family office, $500M AUM
The governance structure and operator alignment in independent sponsor deals addresses our key concerns about smaller-check investing.
LP InvestorSingle-family office
What attracted us was the cash flow profile. Unlike venture, we receive distributions during the hold period.
Institutional AllocatorEndowment fund
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