In the early 1980s, Irving Grousbeck and his colleagues at Stanford Business School launched a revolution in the way that entrepreneurs and investors fund, manage, and grow mature businesses. Their creation — the search fund — changed the way many investors thought about equity investments, turning fund managers into quasi private equity shops and posting impressive returns as a result.
One way to think about the search fund model is by comparing it to the three factors that go into a winning thoroughbred team: the jockey, the trainer, and the horse.
