Innesto enables motivated entrepreneurs to search, buy and operate a private, profitable, small business


The search fund model enables a motivated entrepreneur to search, buy, and operate one private profitable small business while solving succession issues for its owner. Such an entrepreneur is referred to as a “searcher” and the vehicle used as a “search fund”.

The search fund model is proven, with >525 search funds in North America. The asset class is growing globally and catching up with the US. Search funds have generated an average gross return of over 35% to investors.

While keeping an active role in North America, Innesto Partners is among the first funds focused on actively finding and investing in European search fund opportunities.


Step 1 


The searcher raises an average of around 450k euros from a group of investors to cover their living expenses and deal expenses for the entire search period. 

In exchange for investing in search capital, the investor receives:

1. The right, but not the obligation, to invest in the acquisition; and

2. The conversion of the search capital into securities issued as the acquisition capital.

Step 2


To mitigate investment and operating risk, the searcher will search for target industries that are:

Within the preferred industries, companies are targeted based on their sustainable market position, their history of positive, stable cash flows, and the opportunities for improvement and growth.

When a target is identified, the searcher will be responsible for negotiating the deal, performing due diligence, arranging financing, finalizing performance targets, and planning the transition.

Step 3


In the first 6 to 18 months after the acquisition, searchers gain familiarity with the existing business and typically make no significant changes. 

After becoming comfortable operating the business, searchers can create value through a combination of revenue growth, improvements in operating efficiency, appropriate use of leverage, organic expansion, add-on acquisitions, and/or multiple expansions. 

The typical search fund entrepreneur(s) will vest into 25 to 30 percent of the common equity of the acquired company.

Step 4


Most search funds are established with a long-term outlook, generally greater than a five-year time horizon, often longer. 

The model is proven by multiple successful US and worldwide exits.

For more in-depth information about the search fund model, we have curated a resource page that illustrates a series of highly regarded papers and articles.