Ethos Search Capital (ESC), a division of Ethos Partners, recently marked its first anniversary, after a year of growth investing in a number of search fund entrepreneurs.
Since the close of Ethos Search Capital I 12 months ago, it has made significant progress in its mission to assist aspiring entrepreneurs in sourcing, acquiring, and growing small to medium-sized enterprises (SMEs) throughout Europe. Ethos Search Capital I was the first dedicated initiative aimed at supporting searchers in the UK and Europe.
Ethos Partners has supported 33 searchers across eight regions and facilitated nine search acquisitions with nearly £25 million (approximately €30 million) in equity funding over the past year. One of Ethos Search Capital’s primary objectives was to broaden the reach of the search fund model.
Searchers, who typically boast impressive professional backgrounds and often hold MBAs from prestigious institutions, are driven by the chance to manage and grow a business. The target businesses for search funds generally exhibit key attributes such as historical profitability, consistent cash flow, recurring revenues, strong margins, straightforward operations, and clear growth potential.
Sandy Farmer, Partner at Ethos Partners, said, “It has been a privilege over the past year to have met, and had the opportunity to support, so many high-calibre entrepreneurs. We see a significant opportunity for search funds to play a meaningful role in addressing the succession challenges faced by a multitude of SMEs across Europe. We’re pleased to be able to play a part to provide capital and support for talented entrepreneurs and attractive SMEs.”
