Lundberg: Search Fund Buyers Care More Than Traditional Private Equity
Carl Lundberg · Carl Called Business Deadlines Nonsense. His Reasoning Is Hard to Argue · Jan 16, 2024 · at 5:47
Carl Lundberg, partner at Gerald Edelman, contrasts the incentives and deal diligence of search fund entrepreneurs with institutional private equity investors.
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“This is one of the benefits of search, investing in search over investing in kind of traditional private equity is that the searcher really cares, right? Because it's their career. They've only got one shot. If you've got a fund that's going to buy 15, 20 businesses, you know and you're not a principal anyway, you're kind of, Getting a fee to manage the money. Okay. Look, there's a carry, so you want it to work, but actually there's no real skin in the game. The searches probably take more care than traditional PE and finding the right deal.”
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