International Search Funds - 2016: Selected Observations
Lenka Kolarova, Peter Kelly, Antonio Dávila, Robert Johnson. (2016)
IESE ST-415-E, 26 pp
Dated June 2016; data as of December 31, 2015. Sample: "a pool of 45 first-time search funds ... in 14 countries on four continents" (p3), "excluding self-funded searches and second-time search funds" (p5). Status: 13 searching, 13 operating, six deviated, 13 terminal (seven exited for a positive return, two exited with a loss, four ended without an acquisition) (p6). First edition with returns: "Of the 26 funds eligible ... 16 were included in the calculations of returns" (four unsuccessful searches and 12 acquisitions) (p10); "As an asset class, international search funds have achieved an ROI of 2.8x and an IRR of 33.4%. ... The median fund returned 1.9x ... whereas the top-performing fund returned 9.2x" (p11). Caveat: "it is too early to draw firm conclusions about the financial performance of the international search fund asset class" (p11); operating companies valued on "principals' estimates of market value".