Nobody understands what you do.
When I first embarked upon my search fund journey, I proudly started telling people “I’m launching a search fund!” Several confused faces later, I changed my announcement to “I’m going to buy and run a business!” This, however, inspired nearly as many frowns of confusion - from my colleagues, classmates, friends, family… and nearly anyone I told.
“So you’re fundraising?” was the most common response from family members to my explanation.
Some of my more sophisticated peers would respond with, “Oh, so you’re going into private equity.” Followed with, “that’s very competitive.” Helpful input.
And my favorite, “Do you have control issues?”
On the rare occasion that I found myself on a phone call or at a coffee shop with someone versed in search funds, a wave of relief would come over me. For once I wouldn’t have to explain myself, and I could move on to the real objective of the meeting - raising capital, sourcing deals, hiring interns, or choosing an attorney.
You, prospective searcher, have this to look forward to. Almost nobody will understand what you do. Most will have never heard of a search fund before, many will not be familiar with private equity, and for still others the whole business world is a blur of money. And even the rare soul that is familiar with search funds will not fully understand what you do, why you’re doing it, and how you’re doing it. You alone will have the complete picture. If you’re married, your spouse will likely come closest to a complete understanding, but even then, there will be a gap.
As with most entrepreneurial journeys, this is a lonely road, all the way from deciding to search to operating the business you acquire. It’s lonely at the top, as the saying goes, though many times you will feel you’re at the bottom, where it’s equally lonely.
Startup entrepreneurs frequently experience this dual existence. They are often the foremost experts in their niche field, unmatched in knowledge or intellect, and even the best communicators fail to share the complete vision that sits only in their head. Even the most empathic leaders fail to find counterparts with exactly the same drivers and priorities, for better or for worse.
You, searcher, despite your impressive skills, training, and personality, will often find yourself a team of one, no matter how many like-minded people you surround yourself with. (Read Phil Knight’s Shoe Dog for a great account of this.) You must make the hard, often unpopular, decisions, and you must choose to act on sound advice and ignore other equally-sound advice, because only you understand your vision, and only you understand yourself.
From the time you decide to launch a search fund, you will have at least some doubters. They may be friends, family members, colleagues, or even professors. But you must remember, every time you hear a word of doubt or discouragement, that only you have all the relevant data, and only you, therefore, have the capacity to make the right decision for yourself, and eventually for your company.
And it never ends. Even once you make an acquisition, these challenges will be present in full force. Even if you fail to buy but decide to continue along the entrepreneurial path, you will continue to exercise your muscle for making lonely decisions and forging a path that few understand.
Even now, nine years into my search fund journey, I face these challenges daily as I introduce Asia Pacific to the search fund model. My efforts are split between educating and motivating people enough to bring them on the journey with me, and charging forth on my own to make sure we arrive at our destination. But alas, we chose to run this gauntlet the day we chose the life of an entrepreneur.
