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Today’s Rundown

• Top 10 search fund investors

• Search fund deep dive on Germany

• Current tech-enabled rollup gap

• Legal pitfalls in search fund deals

• 2 deal / launch announcements

• 4 new career opportunities

Database Overview

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Weekly Highlights

• Kevin Hong, founder of private equity firm Caprae Capital Partners, published a search fund survey, honoring the global top 10 search fund investors in 2025:

  • With over 5,000 individual data points submitted and 115 fully completed survey submissions

  • Across 40 firms, the top 10 search fund investors are:

    • 🥇 Search Fund Partners

    • 🥈 ETA Equity

    • 🥉 Peterson Partners

    • The Nashton Company

    • The Cambria Group

    • Red Forest Capital

    • Marion Equity Partners

    • TD Investments

    • Relay Investments

    • Futaleufu Partners

• Moonbase Capital, a Barcelona-based search fund investor, published a search fund deep dive on Germany:

  • Since 2009, Germany has seen the launch of 20 search funds, with 10 of them completing acquisitions - half of which occurred between 2022 and 2023

  • An estimated 560,000 German SMEs will seek a successor by the end of 2026, yet up to 250,000 could shut down due to a lack of buyers

  • As of 2022, Germany had 3.4 million SMEs, representing 99.2% of all businesses, generating 27.3% of national turnover, and employing 53.6% of the workforce

  • About 52% of family businesses are led by third-generation or later CEOs, compared to a global average of only 20%, showing a deep-rooted tradition of family ownership

  • Although many SME owners remain skeptical of outside buyers, rising energy costs (impacting nearly two-thirds of SMEs) and demographic pressures are making acquisitions more viable and necessary

• Eli, founder of substack blog Verticalized, shared his view on the current tech-enabled rollup gap:

  • AI-driven rollups and Venture Buyouts (VBOs) represent a massive, underexploited opportunity, but financial markets have yet to reward tech-enabled services with multiple expansion, making the strategy a high-potential but contrarian bet

  • To prove out a VBO strategy, founders likely need $20–30 million at the seed stage, as smaller acquisitions make it hard to isolate the true impact of AI on EBITDA improvements, especially when revenue growth may be attributed to operational, not technological, enhancements

  • There is no standard playbook for corporate structure in VBOs, but successful strategies may require flexible models like OpCo/PropCo separation to align capital sources with asset-light tech operations, which many traditional VC structures are currently not built to support

  • New financial infrastructure is needed to support tech-enabled services rollups, including venture firms that underwrite the operational complexity and private credit funds willing to lend earlier in the lifecycle once performance patterns emerge

  • The funeral industry is a prime target for tech-driven transformation, with startups like Meadow Memorials cutting costs through cremation centralization and rethinking “celebration of life” venues - turning underutilized spaces like wedding halls into emotionally resonant, lower-cost memorial options

• Mark Wendaur, an advisor to family offices, private equity and entrepreneurs, published his view on avoiding common contract pitfalls in search fund deals:

  • Many small and mid-sized businesses rely on informal or outdated agreements, which often lack enforceable terms and create major risks during disputes or business sales, especially when scaling or transferring ownership

  • Indemnification and liability clauses are among the most negotiated in contracts; failing to secure mutual indemnification and clear environmental responsibility can leave a buyer exposed to lawsuits, cleanup costs, and reputational damage

  • Limitation of liability clauses must be clearly written and legally compliant; damages caps should be reasonable, explicitly include or exclude consequential losses, and allow carve-outs for serious misconduct like fraud or IP infringement

  • Contracts that restrict assignment or treat ownership changes as defaults can block or delay acquisitions; buyers must review key agreements early to ensure they are assignable and avoid deal-killing surprises

  • Vague payment terms, undefined dispute processes, and missing jurisdiction clauses are common pitfalls that disrupt cash flow and increase legal costs; standardized templates and early legal review can prevent these issues and protect enterprise value

Deal / Launch Announcements

• 🇬🇧 Lars Becker launched European Technology Group, long-term oriented, strategic platform that invests into leading software solutions serving the public sector in Europe (link)

• 🇩🇪 Chiara van der Put launched VDP Equity, a sector-agnostic search fund (link)

• 🇩🇪 Henry-Yves Coco and Maximilian Kröll launched Nexus Nachfolge, a sector-agnostic search fund (link)

• 🇫🇷 Lucile Brethomé and Paul Grimal launched Épicéa Transmission, a search fund (link)

• 🇫🇷 Ghislaine El Alami launched Altera Capital, a sector-agnostic search fund (link)

Career Opportunities

• [PE-Asset] M&A Director | Camino Search | London (apply)*

• [PE-Asset] Head of Corporate Development | Rainmaker Society | Munich | €190-200k (apply)*

• [PE] Investment Associate / Senior Associate | TopRecroot | Zurich (apply)*

• [PE] Investment Associate | ACL Partners | Munich (apply)*

_*Headhunter

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