Mission Critical SMB Investing
Enduringly profitable businesses, with AI upside.
We acquire small businesses that perform in any economy — then make them better with AI. A thorough underwriting process and proprietary data on thousands of SMBs let us pass on most deals and concentrate on the top of the top.
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Our Investment Themes
Four investment themes that drive our strategy and create sustainable competitive advantages.
Staying Power
We target companies with sustainable earnings power — essential services, 10+ years of operating history, and the resilience to endure multiple economic cycles.
Incentive Alignment
Economics aligned between buyer and investors, robust governance, and operators well-positioned to execute — creating accountability at every level.
Asymmetric Bet
A credible path to outsized returns — search funds have averaged ~30% IRR (Stanford) — combined with a healthy margin of safety and conservative deal structures.
Margin of Safety
We seek acquisition terms that provide downside protection. Our portfolio averages a 3.9x purchase multiple — 15% below market — with credit metrics 24% less risky.
Underwriting
Our Process
We say no to almost every deal we see. The ones we keep go through one of the most thorough underwriting processes in lower-middle-market PE.
1
Diligence
Underwriting against thousands of SMBs in our internal dataset — comparable financial profiles, multiples, capital structures, and operator quality. We pass on most deals.
2
Planning
90-day transition plans, management assessment, and strategic roadmaps built before closing — never improvised after.
3
Execution
Hands-on operational support, growth initiatives, and add-on acquisition strategies to accelerate value creation — measured monthly against the plan.
4
Tech Enablement
AI and automation implementation, CRM modernization, and data analytics to transform traditional businesses — the upside on top of an already-profitable cash flow.
Hands-on partnership
A Boutique Experience
Unlike large institutional funds, we provide hands-on partnership with every portfolio company and investor relationship.
- Direct access to managing partners on every deal
- Personalized investment recommendations based on your criteria
- Transparent reporting and regular portfolio updates
- Exclusive co-investment opportunities alongside the fund
3.9x
Avg. Purchase Multiple (15% Below Market)
250+
Deals Reviewed
24%
Less Risky Credit Metrics
$11B+
Transaction Experience
22%
Less Burdensome Fees
Leadership
Experienced Leadership Team
Combining institutional finance expertise with proven entrepreneurial success.
Sean Smith
Managing Partner
Institutional finance expertise from CIBC ($11B+ in transactions) and M&A advisory at Applico Capital.
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Research & Insights
Market analysis, investment frameworks, and perspectives on lower middle market opportunities.
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The Self-Funded Search Guide
Everything you need to know about self-funded search — from raising capital to closing your first deal.
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The SMB Investor
Market insights, deal analysis, and lessons from the trenches. No fluff, no spam.
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The latest from The SMB Investor
Independent research, deal data, and frameworks from Search Fund Ventures and the SMB Investor Network.
Reports
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Report· Free with email
The VC-SMB Convergence: How Startup Valuation Conventions Are Reshaping Small Business Investing
In-depth analysis of how venture capital firms are entering the SMB market and what it means for valuations and deal structures.
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The LP's Due Diligence Template: 20 Questions to Ask Any SMB Fund or Operator
A structured framework of 20 essential questions every LP should ask before investing in an SMB fund, search fund, or independent sponsor deal.
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Foundational Guide to Self-Funded Search Investing
A comprehensive 24-page framework for evaluating and investing in entrepreneur-led small business acquisitions.
From the blog
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Blog· Sep 26, 2026
What SBA Loan Charge-Off Data Shows About SMB Acquisitions
SBA loan-level data shows which acquisition loans charged off and when, but it cannot measure whether an acquisition failed or what its equity investors lost.
Blog· Sep 26, 2026
Search Fund Terms: What an LP Nets at 2x, 3x, 5x
The same exit pays an LP a different amount depending on the structure. A waterfall model at 1.5x, 2x, 3x and 5x shows where terms matter and where they don't.
Blog· Sep 15, 2026
SMB Portfolio Allocation: Where the Sleeve Fits
SMB portfolio allocation starts with purpose. Examine shared risks, cash demands and private-market exposures before deciding where an SMB sleeve belongs.