Glen Silvestri: Investing in the Future With Search Funds and Entrepreneurship Through Acquisition
5 Search Fund Facts:
- Diverse Entrant Profiles: Glen sheds light on the evolving backgrounds of search fund entrepreneurs, moving beyond the traditional Master of Business Administration (MBA) graduate profile to include varied professional experiences and educational pathways.
- Evolution of Search Funds: Initially developed in the US, search funds have evolved significantly. Search funds in Canada have grown from 15% of capital coming from Canada to now 25-40%.
- Sage Capital’s Role: As a managing partner at Sage Capital, Glen supports search fund operators from acquisition through to successful exit, emphasizing strategic growth and investor alignment.
- Nontraditional Path to Entrepreneurship: Although it’s not new, acquiring a business through a search fund with the support of a consortium of investors is a lesser known path to entrepreneurship.
- Investment Strategy: Sage Capital focuses on a wide range of industries, favouring companies with potential for long-term growth and strong operational frameworks.
Show Notes
[0:00:52] What is a Search Fund?: Glen explains the basic concept of a search fund and the typical profile of someone who would start one.
[0:02:31] Glen discusses the origin of search funds in the US and their evolution over the years.
[0:04:24] Financial Returns: Discussion on the financial returns of search funds, using data from the Stanford Search Funds Study.
[0:08:36] Glen elaborates on the diverse backgrounds of search fund entrepreneurs beyond the traditional MBA pathways.
[0:12:50] Glen shares his professional journey into the search fund space and the founding of Sage Capital.
[0:17:30] Specific strategies and criteria that Glen and Sage Capital use when selecting search funds to invest in.
[0:22:01] Glen discusses various types of nontraditional search funds and different investment opportunities in the lower middle market.
[0:26:09] Exploring the concept and appeal of self-funded search initiatives.
[0:37:43] Exit Strategies: The typical buyers of search fund-operated companies and the exit strategies employed.
[0:41:52] Long-Term Holding vs. Early Selling: Glen addresses theories and practices regarding the optimal time to hold or sell a search fund-operated company.
[0:48:53] Glen offers advice to his younger self based on his years of experience in search funds and ETA.