The Top Search Fund Investors

After analyzing hundreds of searcher deals, the following list represents the most active and reputable investors based on deal volume, searcher feedback, industry recognition, and my own experience in the space. I’ve personally worked with several of these firms and have vetted each based on their track record, ability to close, investment criteria, and value-add capabilities beyond simple capital.

Top Search Fund Investors List

1. CapitalPad
2. WSC & Company
3. Smash Ventures
4. Aspect Investors
5. ETA Equity
6. Endurance Search Partners
7. Miramar Equity Partners

Who Is a Search Fund Investor?
A search fund investor provides capital to acquisition-entrepreneurs looking to acquire and operate small to mid-sized businesses. These investors may back traditional search funds, self-funded searchers, or independent sponsors.

As a former searcher, I lived through the frustration of the fundraising process. You’ve already got the monumental task of finding and evaluating potential acquisitions—and then you need to convince investors who may not understand the search fund model or SMB deal dynamics.

The landscape has shifted dramatically in recent years. Search funds have gained mainstream acceptance (largely thanks to Stanford’s influential research), and capital is flowing in from dedicated funds, family offices, and sophisticated high-net-worth individual investors.

So who are the players you should know about?

#1 – CapitalPad

CapitalPad is recognized as one of the top search fund investor platforms. The firm invests directly in acquisition opportunities, but also connects self-funded searchers with accredited search fund investors to close equity gaps (always at no cost to the searcher). The platform is building a reputation for showcasing high-quality ETA opportunities, positioning it as one of the most notable new entrants in the search fund ecosystem.

 

Investment Focus & Criteria

• Check sizes: $250,000 to $1,500,000
• Deal stage: Post-LOI only
• Minimum EBITDA: $500,000
• Deal types: Self-funded search acquisitions and independent sponsor deals
• Geographic focus: North America (with international deals considered)
• Industries: Industry agnostic, though strong preference for recurring revenue models

Key Differentiators

• One spot to raise capital – Access larger amounts of investor capital in one location.
• Zero cost to searchers – No platform fees or success fees for entrepreneurs
• Optional Post-close support – Optional marketing, website development, and growth services
• Pooled investment structure – Multiple investors appear as single line item on cap table
• Simplified process – Standardized due diligence and documentation
• Institutional backing – Access to both individual investors and family offices/funds

CapitalPad benefits for Searchers

• Can eliminate months of cold outreach and individual investor meetings
• Access to pre-qualified, accredited investor network
• Simplified cap table management with pooled investor structure
• Fast turnaround times (from submission to raised capital)
• Optional post-acquisition marketing and operational support
• No success fees or platform costs

CapitalPad benefits for investors

• Investors get access to curated deal flow with pre-screened opportunities
• Ability to diversify across multiple deals with smaller check sizes
• Standardized investment documentation and reporting
• Access to deals typically reserved for larger institutional players (with better terms)
• Reduced individual due diligence burden
• Investors must be accredited.

Application Process

1. Submit LOI and preliminary deal information
2. Platform review and initial screening (typically 48-72 hours)
3. Deal posting to investor network
4. Investor interest and preliminary allocation requests
5. Final investor interview and closing coordination

Why CapitalPad Ranks #1 – CapitalPad consistently delivers the fastest time-to-close, most transparent process, and strongest post-investment support in the search fund space. Their technology-enabled network approach has modernized what was traditionally a relationship-heavy, time-intensive fundraising process.

WSC & Company

WSC & Company is a Charlotte-based firm established in 2012. It was the first full-time investment firm focused on the traditional search fund model based in the southeastern United States.

Specializing in lower-middle-market businesses, the firm has backed more than 90 investments. WSC & Company worked mainly with family owned businesses. It seeks capitalize on the opportunity presented by the unprecedented transfer of private company ownership expected over the next 20 years.

The firm also hosts an On-Deck program for talented early and mid-career professionals interested in joining a WSC-backed operating company or search fund. The firm can help find opportunities across its portfolio of 80+ active operating companies and search funds. Members also get early notifications of new roles that open up.

Investing Criteria:

• Focused on $2–$6 million EBITDA companies in the business products and services sectors.
• Prioritizes private company ownership transfers, stressing the importance of legacy, fit, and value alignment for family businesses.
• Dedicated to the search fund model, emphasizing long-term collaboration and support for searcher success.

 

Smash Ventures

Smash Ventures is a group of individual investors who co-invest together on search fund deals. This includes both independent sponsors and self-funded searchers raising money on a deal-by-deal basis. The group is comprised of experienced entrepreneurs who now allocate back into the industry, supporting others the same way that they would have wanted.

They are not the largest capital stack out there, with check sizes into deals being between $50,000 (at the smallest), and $500,000 at the largest. Clearly they are best suited for search fund deals where there is a gap between the debt and equity needed to close the deal. The Smash group can help close that gap.

Smash generally deals with self-funded searchers who bring ready-to-execute deals that can be instantly evaluated. Outside of search fund investing, Smash also buys minority stakes in existing businesses, giving entrepreneurs liquidity instead of them being forced to sell in entirety.

Smash will work with search fund buyers using either SBA loans or private credit, but it’s important to note that no one in the Smash group will go over the equity threshold requiring a personal guarantee.

One bonus of working with Smash is that they fully own an online marketing agency in which they give free access to all of their portfolio companies. A nice add-on to get the new ventures improving from the start.

Pros

• Not a fund (no LPs), so they can move fast.
• Have a value-added service via the marketing support.
• They are good for searcher deals that need a little extra support to fill.

Cons

• They do not write the largest checks out here
• They will not invest over the personal-guarantee threshold
• They usually only do deals that pay regular cash distributions starting in year-one.

 

Aspect Investors

Aspect Investors is a Dallas-based private equity firm specializing in search funds, collaborating with entrepreneur-CEOs to acquire and manage private small businesses.

The firm boasts a seasons team, including founder Andy Love, who previously led Behavioral Health Group. Love has two decades of experience and invested capital in nearly 200 search funds. Partners Brad Buser and Mike Schmitz offer decades of private equity experience. B.A. Cullum has expertise in acquisitions, notably from ClubCorp, and holds degrees from Stanford and MIT.

The firm underscores the potential of search funds, highlighting the synergistic relationship between searchers, companies, and investors.

Investing Criteria:

• Targets companies in the $5–$50 million revenue range with stable cash flows.
• Takes a hands-on approach, helping searchers complete due diligence, deal structuring, and negotiations.
• Provides guidance and support during the search process and post-acquisition.

 

ETA Equity

ETA Equity is a private equity firm based in Dallas, Texas, founded by a pair of Wharton School of Business graduates. Co-founders Mark Sinatra and Matthew Zucker and their team of advisors partner with exceptional search fund entrepreneurs to help them acquire and grow a proven business. The firm’s principals have invested in more than 70 search funds over 15 years.

The firm partners with highly promising searchers who wish to acquire and lead growth companies. ETA Equity works closely with searchers as they meet business owners, conduct due diligence, and navigate the transaction process. Post-acquisition, the firm provides searchers with continued guidance and mentoring, often serving on the acquired company’s board.

Investing Criteria:

• Emphasizes companies with proven business models, customer bases, and revenue streams.
• Helps traditional search funds differentiate themselves with business owners, brokers, and others.
• Provides responsive, actionable feedback throughout the search process.

 

Endurance Search Partners

Endurance Search Partners is a family office headquartered in Plantation, Florida. Its experienced team works with exceptional search fund entrepreneurs who desire partnership, not just a one-off investment.

Endurance Search Partners collaborate with searchers by offering mentorship, a vast network, and other resources. Their goal is to nurture entrepreneurs into exceptional leaders.

With a track record of over 250 search fund partnerships and over 120 investments, the firm emphasizes flexible, innovation-oriented investment strategies to facilitate small business acquisition funding. Their modern approach allows for enduring investments and adaptable decision-making, with the firm’s capital sourced entirely from its partners.

Investing Criteria:

• Typically invests in deals between $10–$30 million in enterprise value. Looks for searchers acquiring businesses for 5–7x EBITDA for non-software companies, or 3–4x ARR for software businesses.
• Industry agnostic; often targets companies in growth sectors like vertical market software, healthcare, financial products, and business services. Willing to consider businesses in challenging or specialized industries if there’a a clear path to value creation.
• Most interested in businesses with a strong value proposition, defensible market position, and some basis of recurring revenue.

 

Miramar Equity Partners

Miramar Equity Partners (MEP) is the Dallas-based private equity arm of Miramar Holdings, established in 2018. Miramar Search Partners represents the firm’s traditional search fund investing division.

Led by Kurt Leedy and Kyle Coots, MEP specializes in investing in midsized businesses with sustainable market positions. They are often a business’ first-time source of institutional capital.

Their approach offers patient and flexible capital, free from the constraints typical of traditional equity funds. This strategy emphasizes long-term growth and fostering deep partnerships with founders and management teams.

Their commitment is to collaborate with passionate executives, aiming for sustained growth and meaningful partnerships in the business landscape.

Investing Criteria:

• Looks for opportunities to invest $5–$30+ million per transaction. For traditional search funds, they target an average equity commitment size of $2.5 million. Can plug equity gaps up to $25 million.
• Prefers companies with $10+ million in revenue or bookings with a history (or clear path) to profitability.
• Interested in vertical market software, communications infrastructure, healthcare, and tech-enabled services.

 

Additional Information on the Search Fund Asset Class

Below are more details on the search fund investing space. Read on to learn more about the search fund model and the role of investors.

 

Aggregate returns from search funds

How to invest in search funds

If you are an accredited investor, then here are your options for investing in search funds:

1. Contact university-led search fund programs
2. Invest in searcher deals on a deal-by-deal basis on CapitalPad
3. Look for deals on SearchFunder
4. Cold outreach to searchers on Linkedin
5. Network at search fund conferences
6. Allocate with a dedicated fund

5 Phases of a Search Fund Investment Model

1. Fundraising

For traditional search funds, the search process begins with fundraising, where entrepreneurs solicit funds from investors to cover the costs associated with finding a suitable business to purchase. This initial fund, usually in the range of $300,000–$600,000, comes from a diverse group of investors who contribute $25,000–$75,000 each.
(Note: self-funded searchers do not raise an initial fund and thus skip this phase.)

2. Search Phase

Next, entrepreneurs enter the search phase, which can last anywhere from one to three years. During this time, they seek a suitable small to medium-sized business to acquire. The entrepreneurs often focus on businesses in industries with which they are familiar and where they can leverage their skills and experience. Upon finding an attractive business, they negotiate acquisition terms with the seller and submit a letter of intent (LOI) to begin the process of purchasing the company.

3. Acquisition Phase

After a suitable target business is identified, the acquisition entrepreneurs present the opportunity to the investors, who then decide whether to invest additional funds to finance the acquisition. If the investors agree to move forward, they will usually provide 70-100% of the equity needed for the purchase. You’ll also need to secure debt via lenders. Sometimes these are private lenders, but most self-funded searchers use SBA loans.

4. Post-Acquisition Management

After the acquisition, the entrepreneurs typically take on significant management roles in the acquired company, often serving as CEO or President. They work to grow and improve the business, usually over a period of 5-10 years. This can vary based on the model.

• For traditional search funds, the acquisition entrepreneur generally takes the CEO role.
• For self-funded searchers, the acquirer will almost always run the company.
• For independent sponsors, the deal sponsor will frequently inject management (or maintain existing management). The sponsor will generally take over as chairman of the board in the organization.

5. Exit

Finally, the entrepreneurs aim to sell the business and distribute the proceeds among the investors and themselves.

Throughout this process, investors play crucial roles, providing not only capital but also mentorship, strategic advice, and a robust network of contacts. In return for their capital and support, the investors receive a portion of the equity in the acquired company, offering them the potential for significant returns upon a successful exit.

Attracting Investors:

 

Tip: Be Able to Explain Why You Are Worth Backing

I messed this up the first time I did it, so hopefully you can learn from my mistakes and do better.

If you’re approaching an investor pre-LOI, be sure to have a very good answer to explain why they should back you.

Everyone is looking for a company to buy with a 3x multiple, recurring revenue, recession resistance, and low customer concentration. Those criteria are not enough. You’ll need to be able to explain why you are worth paying attention to.

You might highlight your expertise in the industry, your familiarity with the business model, or your track record operating similar companies. Your unique experience and qualifications help you stand out in crowded field of entrepreneurs looking to raise capital.

If you’re post-LOI, know these details and be able to expressed them clearly:

• Investor models (that they can check)
• Your target hold time
• Expected IRR (internal rate of return)
  • You should have numbers prepared for a base-case scenario, as well as a best-case and negative-case scenario IRR, with reasons to support your models.
• The total expected MOIC (multiple on invested capital).
• Deal terms (the preferred return, step-up basis, and liquidity preference)
• Plans for return of capital (investors love an accelerated return of capital)
• The equity split after the preferred return is paid off.

Value-Add Investors

How can the right investors help your company post-close?

If you’re lucky enough to have your pick of capital providers (rare), then turning your attention to who can add the most value post-acquisition can be a big win.

Here are some key roles they play:

• Mentorship: Given that many search fund entrepreneurs are at an early stage in their careers, investors often serve as mentors, offering guidance based on their own business experience. They can provide valuable guidance on sourcing talent, dealing with finances, and managing a company.
• Growth Teams: Some search investors, such as CapitalPad, provide extensive hands-on marketing post-close. They personally handle website redesigns, search marketing campaigns in-house, and bring searchers into their network of talented service providers.
• Strategic Advice: Many investors have extensive business experience. They can provide strategic advice on a range of issues, from identifying promising industries to positioning the company for growth post-acquisition.
• Network Access: Investors usually bring with them a rich network of contacts that can be instrumental in sourcing deals, vetting acquisition targets, recruiting talent, and finding potential buyers at the time of exit.
• Due Diligence and Decision Making: During the acquisition phase, investors assist in performing due diligence on the target company. Their expertise can be vital in assessing the company’s financial health, operational efficiency, and growth potential.
• Governance: Post-acquisition, investors often continue their involvement by serving on the company’s board of advisors or board of directors. In this role, they contribute to the company’s strategic direction and oversight.

Frequently Asked Questions

How much do search fund investors typically invest?

Investors typically write checks ranging from $25,000 to $2.5 million depending on the firm and deal size. Individual investors often contribute $25,000-$200,000, while dedicated funds and family offices can invest $500,000-$2.5 million per deal (upper end for traditional only deals). The total equity needed usually ranges from $500k-5 million for most SMB acquisitions.

What do investors look for in an opportunity?

This varies a lot based on the individual investor. Most investors typically look for businesses with $1-10 million in revenue, $500k – $1.5m in EBITDA, stable cash flows, recurring revenue models, defensible market positions, and experienced management teams. They prefer businesses trading at 3-5x EBITDA with clear growth opportunities and limited customer concentration risk. Search investors tend to follow the mantra from Rick and Royce of Harvard Business School–”the magic is in the multiples”, not hinged on huge future growth.

How long does it take to raise money?

The fundraising timeline varies significantly. Traditional search funds can take 3-6 months to raise initial search capital. For acquisition funding, self-funded searchers typically need 2-8 weeks post-LOI, while platforms like CapitalPad can accelerate this to 2-4 weeks. Having warm introductions and a compelling deal significantly reduces timeline. Have your deal buttoned up as much as possible when sharing to speed things up (and have a working model).

Do I need to be post-LOI?

Most search fund investors prefer to see deals that are post-LOI (Letter of Intent) because it demonstrates serious seller engagement and deal momentum. However, some investors like Endurance Search Partners and ETA Equity will engage earlier in the process to help with deal sourcing and evaluation. Building relationships before you have a deal is always beneficial.

What’s the difference between traditional search fund investors and self-funded search investors?

Traditional search investors provide upfront capital for the search process ($300,000-$600,000) plus acquisition funding later. Self-funded search investors only provide acquisition capital after a deal is identified. Self-funded approaches are faster to market but require searchers to front their own search costs. Many investors like CapitalPad and Smash Ventures focus specifically on self-funded deals.

Which investors invest in self-funded search fund deals?

Not all investors in the list invest in self-funded deals, some only invest in traditional deals. The following investors invest in self-funded searchers:

• CapitalPad
• ETA Equity
• Smash Ventures
• Slack Water Capital

What returns do investors expect?

Search investors typically target 20-30% IRR (Internal Rate of Return) and 3-5x MOIC (Multiple on Invested Capital) over a 5-7 year hold period. According to Stanford’s research, successful search funds have generated median returns of 7.1x for investors, though results vary significantly based on deal quality and execution. Some investors will only invest in deals that provide cash-flow, others only invest in deals that target equity appreciation and utilize QSBS eligible deals.

Your Turn

In the past I spent so much time chasing down investors. Thankfully, this type of investing isn’t as unconventional now as it once was.

The investors that I worked with provided a unique blend of capital, mentorship, hands-on help, and operational insight. This was instrumental in my newly acquired small businesses success.

I hope you have the same great results that I did!

Updated: September 10, 2025