In 1984, H. Irving Grousbeck, the Director of the Center for Entrepreneurial Studies at the Stanford Graduate School of Business, pioneered a new investment model, commonly termed a “Search Fund.” The objective of a search fund is to provide a vehicle for young, aspiring entrepreneurs to search for, acquire, manage, and grow a company. “It’s the most direct route to owning a company that you yourself manage,” Grousbeck said.

To date, over 258 search funds have been raised. A 2016 study conducted by the Stanford Center for Entrepreneurial Studies concluded that a portfolio of first time search funds produced an aggregate, pre-tax internal rate of return of 37% and an aggregate, pre-tax return on invested capital of 8.4x. 

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