The Hunger Games: Finding the Best Search Fund Interns

I've hired hundreds of interns over the years. It's a search fund rite of passage. You post an ad for a "financial analyst intern," hoping to score a bright young mind to help you dig through industries and unearth the perfect hidden gem of a company.

The reality is that more often than not, you end up with a Wall Street wannabe who'd rather be building LBO models than slogging through endless Google searches and company databases. Don't get me wrong, I've had my share of rockstar finance interns. But I've also learned that the best search fund interns often come from unexpected places.

So, what really makes a great search fund intern?

It's not always what you'd expect. In this post, I'll share the hard-won lessons I've learned from hiring (and firing) interns across a range of industries, backgrounds, and pay scales. Get ready to discover the surprising traits that truly matter.

The Finance Intern Mirage

Imagine a bright-eyed finance student, fresh out of their corporate finance class, stumbles upon your job posting. "Private equity internship," it reads, promising a fast-paced, high-stakes world of deal-making and financial wizardry. Jackpot, right? They send in their resume faster than you can say "discounted cash flow."

In reality, the day-to-day reality of a search fund internship is far less glamorous than those finance finance students might expect. Instead of building complex models or pitching deals to investors, your intern will likely spend most of their time scouring the internet for potential target companies, meticulously screening them against your criteria, and compiling data into spreadsheets. It's a far cry from the exciting world of M&A they were expecting.

And that's where the trouble starts. The initial enthusiasm quickly fades as the reality of the job sinks in. Spreadsheets replace stock tickers, Google becomes their best friend, and the thrill of the hunt is replaced by the monotony of the grind. Motivation wanes, expectations are misaligned, and suddenly, your star intern is counting down the days until they can escape back to the hallowed halls of their business school.

The Unexpected MVPs – Poli-Sci Majors & Hungry Underdogs

Now, let me tell you about Sarah. She wasn't your typical finance hotshot. Hailing from a working-class background, Sarah was working her way through community college, hungry to create a better life for herself and her family. She had zero finance experience, but she had something far more valuable, an insatiable curiosity, an unyielding work ethic, and a burning desire to learn.

Sarah dove headfirst into the search fund world, soaking up every bit of knowledge like a sponge. She wasn't afraid to ask questions, challenge assumptions, or get her hands dirty with the less glamorous tasks. And you know what? She became one of my most valuable interns.

Or take the case of another standout intern, a business student from a top university. She didn't have a Wall Street pedigree, but she had something even better, an entrepreneurial spirit. She'd started her own small business in college and ran the university student store like a well-oiled machine. That drive and resourcefulness translated seamlessly to the search fund world, and she quickly rose to manage my entire intern team, even though we never met in person.

What Sarah and this entrepreneurial student shared wasn't a mastery of financial modelling or a prestigious degree. It was a hunger to learn, a drive to succeed, and a knack for problem-solving. They approached the search fund internship as an opportunity, not a chore, and their enthusiasm and dedication were contagious.

The lesson here is clear. When it comes to search fund interns, "hunger, drive, and problem-solving ability" are far more valuable than domain expertise. Don't get me wrong, financial acumen is helpful. But it's the intangible qualities – the grit, the curiosity, the hustle – that truly set exceptional interns apart.

Paid vs. Unpaid, Part-Time vs. Full-Time

Here's a cold, hard truth I've learned. Even if your intern is swimming in trust fund money, paying them – even a modest stipend – almost always yields better results. It's not just about the money itself. It's about the unspoken message it sends, "I value your time and contribution." That shift in mindset can make all the difference in the world.

Now, let's talk about hours. A part-time intern who promises 10 or 20 hours a week might sound appealing on paper. But trust me, the reality is often far less productive. Schedules clash, exams get in the way, and those promised hours dwindle fast.

That's why I'm a big advocate for full-time interns, even if it takes a bit longer to find them. The investment in onboarding and training pays off exponentially when you have someone dedicated to your search full-time, even if it's just for a few months. They become immersed in the process, build momentum, and ultimately deliver far more value than a part-timer juggling multiple commitments.

Of course, full-time interns aren't always easy to come by. But there are gems out there, recent grads eager to launch their careers, or mid-career professionals taking a sabbatical to explore new paths. These folks might be willing to work for less (or even for free in some cases) in exchange for the experience and mentorship you can offer. Finding them might require some extra digging, but the payoff can be immense.

Crafting the Brutal (But Honest) Job Description

When it comes to writing the job description for a search fund intern, I've learned to ditch the sugar coating and embrace brutal honesty. No, it's not all about building fancy models and closing multi-million dollar deals (though those moments do happen). It's about putting in the hours, doing the grunt work, and embracing the grind.

So, I lay it all out there in the job description. I talk about the long hours spent researching industries, the meticulous data entry, the endless Google searches. I highlight the challenges, the frustrations, and the sheer mental stamina required to succeed in this role. Why? Because I want to weed out the unmotivated, the entitled, and the ones just looking for a resume booster.

But I also make sure to highlight the incredible learning opportunities, the mentorship I offer, and the unparalleled exposure to the real world of business. I emphasise the chance to develop critical thinking skills, gain industry knowledge, and build a network of contacts that will serve them well throughout their careers.

During the interview, I continue this no-nonsense approach. I ask tough questions, gauge their reactions, and look for signs of genuine gratitude, dedication, and a hunger to learn. I want to see that spark in their eyes, that eagerness to roll up their sleeves and tackle whatever challenges come their way.

By being upfront about the realities of the job, I not only filter out the wrong candidates but also attract the right ones – those who are truly motivated, adaptable, and eager to prove themselves in a challenging environment. And trust me, those are the interns who will make all the difference in your search.

Conclusion

So, what have we learned? Forget the Ivy League degrees and financial modelling certifications. When it comes to search fund interns, nothing beats good old-fashioned hunger, drive, and a willingness to get your hands dirty. Pay them what you can, prioritise full-time commitment if possible, and don't be afraid to scare off the faint of heart with a brutally honest job description.

Ever had an intern experience that made you want to pull your hair out? Or maybe you've stumbled upon the secret to finding and keeping top talent. Share your stories and tips in the comments below. Let's learn from each other's triumphs and tribulations.

But wait, there's more! Once you've assembled your dream team of interns, the real challenge begins, keeping them engaged, productive, and excited about the search. In another post, I'll share my strategies for managing interns, fostering a collaborative culture, and getting the most out of your team. Stay tuned.