[24.07.2024] – Ethos Search Capital (“ESC”), a service of Ethos Partners, is proud to have recently celebrated its one-year anniversary, marking a year of significant growth. Since its launch, ESC has made substantial strides in its goal to support aspiring entrepreneurs to source, acquire and grow small to medium-sized enterprises (SMEs) across Europe.
Since embarking on its search fund investment journey, Ethos has backed 33 searchers across 8 geographies and supported 9 search acquisitions with almost GBP25m (EUR30m) of equity funding. In 2023 it launched ESC I, the first dedicated proposition for backing UK and European searchers.
A New Era in European Search Fund Investing
An objective of ESC I was to introduce the search fund model to a broader audience. A search fund is an investment vehicle where a group of investors backs an entrepreneur to source, acquire, and grow a small to medium-sized enterprise (SME). Investors provide initial capital to fund the search in exchange for the right to invest in the resulting acquisition.
Searchers are typically talented and ambitious individuals with top-tier professional experience, often holding MBAs from elite business schools. They are passionate about the opportunity to operate and grow a business. Target businesses for search funds typically share several key characteristics, including historic profitability and cash generation, recurring revenues, robust margins, simple operations and a tangible growth opportunity.
A Strong Start
Sandy Farmer, Partner, Ethos Partners:
“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.”
Looking Ahead
Jules Carr, CEO, Ethos Partners:
"As Ethos celebrates this milestone, we remain enthused by the search fund model and optimistic about future opportunities. We look forward to the coming year and to working with our cohort of searchers to provide capital and support to talented entrepreneurs and promising SMEs."
For more information, please visit our website www.ethospio.com
Notes to editors:
Established in 2017, Ethos Partners is a private investment office focused on investing in small private businesses and individuals with potential. Ethos is a collaborative team of experienced investors and entrepreneurs dedicated to nurturing the growth of SMEs by investing its own funds alongside capital from its investor network of experienced, high-net-worth individuals.
Principals Brian Phillips and Julian Carr are experienced, entrepreneurial investment professionals. They have consistently delivered strong returns over 25 years, investing in over 35 deals each at leading PE houses, Bridgepoint, Hg Capital, Legal & General Ventures, Lloyds Development Capital and Greenhill Partners.
Contact details:
Media & communications enquiries:
Jules Heynes, The Story Board jules.heynes@thestoryboard.tv
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