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Today’s Rundown

• Creating long-term value with search funds

• Moonbase Capital on backing Europe’s top searchers

• Istria Capital’s fund performances

• 6 deal / launch announcements

• 9 new career opportunities

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Database Overview

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Weekly Highlights

• Joys of Compounding published a new episode with Will Thorndike, co-founder of long-term holdco Compounding Labs, on the evolution of the search fund model and other strategies for creating long-term value:

  • Will Thorndike's investment framework emphasizes long-term compounding: 50x returns over 20 years equate to compounding at ~21.6% annually - highlighting the power of sustained high-return capital allocation over multiple cycles

  • Search funds have delivered consistently strong outcomes: median investor IRRs over 30% and MOICs between 3–7x

  • A study of 40+ secondary search fund exits found average IRRs in the mid-30s and zero capital impairment - suggesting early exits may leave significant returns unrealized

  • Will’s holding company model typically deploys just $10M–$25M in equity per entity, targeting businesses with recurring revenue and capital efficiency; these structures aim to avoid dilution and raise no further equity, instead relying on debt and internal reinvestment -emphasizing equity efficiency over IRR optimization

  • Founder incentive models are tied to net MOIC thresholds (e.g., 2x, 4x, 8x), not IRR, to avoid misalignment over time

  • Founders can increase ownership percentage as returns grow - reversing traditional models where equity stakes shrink through dilution

  • Early examples like Banyan Software - with only $17M in equity - grew into a $1B+ holding company via dozens of acquisitions, showcasing the scalability and capital leverage of the model when paired with long-duration commitment and disciplined resource allocation

• M&A Zing published a new podcast episode with Ibrahim Abdel Rahim, founder of search fund investor Moonbase Capital, on backing Europe’s top searchers:

  • Ibrahim Abdul Rahim was drawn to search funds through personal experience and Stanford exposure; he chose to back searchers over operating himself, backing 45 in four years, and emphasizes that success often hinges on timing and luck despite careful screening

  • He sees two main searcher types: strong operators who struggle with search and finance professionals who struggle post-acquisition

  • Grit, coachability, and long-term mindset matter most, but no model reliably predicts success - AI tools help, but human judgment is still essential

  • Moonbase focuses on strong company fundamentals - growing sectors, healthy EBITDA, asset-light models - over rigid searcher profiles

  • Deals are rejected based on sector concerns, founder pushiness, or poor investor fit

  • While rooted in traditional search, Moonbase is moving into self-funded and single-sponsor models for diversification

  • Operational demands and board commitments are rising, and AI is being tested to help scale deal review without replacing human oversight

  • Ibrahim sees ETA in Europe accelerating, with growing diversity, bigger deals, and maturing ecosystems in Spain, Germany, and the UK

  • Despite some investor resistance, he advocates for thoughtful growth, innovation, and broader participation to scale the sector sustainably

• Ignacio Olavarría, founder of search fund investor Istria Capital, shared a recap of 2024:

  • Istria Capital Fund I has achieved 4 exits (2 in 2024, 2 recently), with 4–5 more expected in 2025

  • With 23–24 companies still held, a full return of the fund is likely

  • Portfolio companies show strong M&A activity: one-third have completed add-ons

  • Historical performance shows:

    • 2018–2020 vintage: 3.8x MOIC, 32.8% IRR

    • 2021–2022: 2.0x MOIC, 26.5% IRR

    • 2023: 1.14x MOIC, 8.8% IRR

  • Istria Capital Fund II closed at €50M in July 2024 and backed 27 searchers that year (€1.8M deployed, €70K avg. ticket), with 23 more added in early 2025

  • 21 of the 23 were in Europe, and Istria remains focused on the region, supporting first searchers in Norway and Switzerland

  • Acquisition activity (as of mid-2025): €13M deployed in 11 acquisitions in 2024; 3 more already closed in 2025

  • The portfolio now holds 20 companies and is expected to reach 30 by year-end; five acquisitions are approved and 15 are under LOI

  • Combined acquisition ratio across Istria Capita Fund I & II stands at 78.2% (based on 108 search fund terminations), though this is expected to decline due to growing volume and misaligned expectations

  • Key ecosystem insights:

    • Board capacity remains a constraint in Europe, though exits are freeing up experienced talent

    • Equity gaps persist - best addressed by tight partnerships with reputable lead investors rather than large passive syndicates

    • Istria favors long holds with flexible 10+3 fund terms; in nearly all liquidity events, they have opted to stay invested

    • Despite scaling potential, Istria will cap searcher investments at ~30–35 per year, focusing extra capacity on supporting operators post-acquisition

Deal / Launch Announcements

• 🇩🇪 Andreas Dengler and Patrick Vollmer launched D+V Nachfolge, a search fund focused on B2B businesses (link)

• 🇮🇹 Tom van der Haegen launched Newport Investment, a holdco focused on complex carve-outs and transitional situations (link)

• 🇩🇪 Jan Wichmann launched JWR Partners, a search fund on IT services, managed services, digitization, IT infrastructure (link)

• 🇵🇹 Miguel Marques Paulo Fiet launched MMP Capital, a sector-agnostic search fund (link)

• 🇬🇧 Fernando Villanueva launched Olympia Search Capital, a sector-agnostic search fund (link)

• 🇬🇧 David Lynch launched Advanced Healthcare Group, a holdco focused on healthcare manufacturers, distribution centres and maintenance specialists (link)

Career Opportunities

• [PE-Asset] Chief of Staff | Altus Partners | London | £190-230k + bonus + equity (apply)*

• [PE-Asset] M&A Working Student | accompio | Munich (apply)

• [PE] Investment Professional | Silver Investment Partners | Frankfurt (apply)

• [PE] Investment Associate / Manager | Tim Wagner Personalberatung | Munich (apply)

• [PE] Investment Analyst / Associate | THRONSBERG | Frankfurt (apply)*

• [PE] Investment Analyst | Ardian | Frankfurt (apply)

• [PE] Investment Intern | KKR | Frankfurt (apply)

• [PE] Investment Intern | BU Bregal Unternehmerkapital | Milan (apply)

• [PE] Investment Intern | Comitis Capital | Frankfurt (apply)

• [PE] M&A Intern | Tembo Search Partners | Hamburg (apply)

_*Headhunter

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