The fund aims to capitalize on the opportunity presented by family-owned SMEs that generate significant profits.
Search funds, which invest in individuals or teams to acquire and run businesses, have been the best performing asset class with annual returns exceeding 30%.
Scipio has over three years’ experience in investing in search funds.
Search funds have emerged as an investment strategy over the past few decades. The concept was first introduced in the United States in the 1980s by H. Irving Grousbeck, a professor at Stanford Graduate School of Business. Search funds are typically created by a group of individuals or a single entrepreneur who raise capital from investors to search for and acquire a business that they will later manage. This approach allows investors to back talented individuals or teams and benefit from the potential growth and profitability of the acquired business. Over the years, search funds have gained popularity due to their high returns, with annual returns exceeding 30% on average.
The focus on family-owned small and medium-sized enterprises (SMEs) is significant. Family-owned businesses have a long history in many cultures, including Spain and the Netherlands. These businesses often have a strong sense of tradition, values, and long-term commitment to their communities. They play a vital role in the economy, contributing to job creation and economic development. As the post mentions, there is a growing opportunity to invest in these family-owned SMEs that generate substantial profits each year. This indicates the recognition of the potential value and growth opportunities in this sector.
The merger between Swanlaab Venture Factory and Scipio Holding Group reflects the increasing interest in search funds and the recognition of the potential in investing in family-owned SMEs. By combining their expertise and resources, the two companies aim to create a fund that can capitalize on this growing opportunity globally. This merger signifies the continued evolution and innovation in the investment landscape, as companies seek to identify and invest in promising assets with high returns.
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