Liberty Search Ventures

A search fund is a two-phase investment vehicle. In Phase I, investors back an entrepreneur — the "searcher" — with a modest pool of capital to locate, diligence, and negotiate the acquisition of a single private company. In Phase II, those same investors provide the equity to close the acquisition, at which point the searcher becomes CEO. The holding period is typically long, with limited exit pressure. The model is distinct from traditional private equity buy-and-build or fund-of-funds approaches because the GP is the operator, not a portfolio manager.

The firm targets profitable, lower-middle-market companies in the United States, typically with enterprise values between $5 million and $30 million. Ideal targets have recurring or repeatable revenue, a durable market position, and a founder motivated to transition ownership and leadership. Industries with stable demand and minimal technological obsolescence are preferred — businesses that benefit from operational focus rather than rapid innovation cycles.

In the search fund structure, the searcher — who becomes the CEO post-acquisition — is the key decision-maker. The investor group typically receives regular reporting and holds governance rights, but the principal operating the acquired company drives strategy, capital allocation, and hiring. This is fundamentally different from a GP committee model; the deal lives and dies with the skills of the person in the operator seat.

The economics differ sharply from commingled fund structures. Investors receive a pro-rata equity stake in the acquired company based on their capital contribution. The searcher typically earns a meaningful carried-interest-like equity stake — often 20 to 30 percent — vesting over time alongside a CEO salary. There is no management fee on committed but uncalled capital in the search phase, and fee structures during the operating phase are negotiated deal by deal.

The classic search fund commits to one acquisition. Some successful searchers later raise a traditional fund or pursue add-on acquisitions under the operating company. But the founding architecture is intentionally single-asset — the searcher's entire attention and investor capital are concentrated on one outcome. Any variation from that model would represent a structural departure from the original mandate.