Dorado funds entrepreneurs who are committed to the Search Fund model of entrepreneurship through acquisition. A search fund is an investment vehicle that offers an aspiring entrepreneur, or pair of entrepreneurs, the opportunity to raise permanent capital with which to search for, acquire, and scale an existing, cash flow-positive business. Money for a search fund is raised in two stages with the first for funding the search for an investment and the second stage funding the investment. The first Search Fund was launched in 1984 in the US and since that time the model has grown and evolved around the world. Search Funds in Australia are a relatively new investment strategy with the first fund launched in 2019.
The ideal background for an individual founding a Search Fund typically encompasses a blend of strong academic credentials, significant professional experience, and entrepreneurial spirit. Academically, founders often hold MBA degrees from top-tier institutions, which provide them with a solid foundation in business principles, strategic thinking, and leadership. Professionally, they usually have experience in management consulting, investment banking, or operational roles within established companies, giving them exposure to best practices in business management, financial analysis, and strategic decision-making.
Moreover, an entrepreneurial mindset is crucial, marked by a high tolerance for risk, resilience in the face of challenges, and a proactive approach to identifying and seizing opportunities. Effective communication and interpersonal skills are essential for networking, negotiating deals, and managing relationships with investors and stakeholders. Additionally, sector-specific knowledge or expertise can be advantageous, depending on the targeted industry for acquisition. The combination of these elements enables a Search Fund founder to navigate the complexities of acquiring and growing a small to medium-sized business successfully.
When seeking funding for a property development project, the key issue for developers has always been the source of funds.
In our previous post, we sat down with Dorado Director Thomas McClung to learn how he went from…
