Our Search Strategy

ENTREPRENEURS THROUGH ACQUISITION

In all our investments, we seek to partner with exceptional entrepreneurs. In search, we back exceptional people who are seeking to be entrepreneurs through acquisition.

HOW DOES SEARCH WORK?

Search entrepreneurs ("Searchers") spend up to 3 years looking for a company to acquire and then operate as CEO. Approximately 60% search solo and 40% search with a partner. Searchers raise a small amount (usually $300k-$400k per Searcher) from investors who ideally provide the support and equity capital needed to find and acquire a target company. Typically, ideal acquisitions for our Searchers are companies with strong recurring revenue, $2 to $5 million of cash flow, and a history of profit and growth.

WHO ARE TYPICAL SEARCHERS AND INVESTORS?

While originally popular among newly-minted MBAs, the search model has captured the interest of many mid-level managers and even seasoned executives. Over 200 search funds have been formed since 1983 and the model has gained significant popularity in recent years. Search investors include both seasoned operators and investment professionals who immediately enhance the Searcher’s network, due diligence capabilities, and experience base.

WHAT IS OUR HISTORY IN SEARCH?

Our Founding Partner and Chairman, Joel Peterson, was one of the early investors in search funds and a former board member of Asurion. Joel teaches courses in entrepreneurship and leadership at the Stanford Graduate School of Business and his firm, Peterson Partners, continues to be an active search fund investor.

WHY WORK WITH US?

Searchers need three resources from investors: network, capital, and assistance.

1. A Large Network. Our network includes over 130 portfolio company CEOs and more than 100 investors with deep expertise in a variety of private equity, venture capital, and real estate markets. We regularly leverage this network to assist our Searchers.

2. Flexible Capital. Our dedicated search group provides the initial capital required for the search unit and pro-rata or super pro-rata investments. Additionally, we have the flexibility to back Searchers with larger transactions.

3. Assistance. Searchers often have a lonely road – whether looking for a business, or running one. Our mentality is that we work for our entrepreneurs, and we want to provide them whatever help they need. We believe our selective approach to investing in search fund entrepreneurs ensures our ability to deliver on our promise to be great partners. For us, success means building relationships that extend well beyond the first investment.

“Peterson Partners has been fantastic to work with. They really understand our business and industry, and their insights have been essential in helping us evaluate our long-term strategy. It’s been a pleasure to have team players on our board whose expertise adds real value to our company.”

Mahesh Rajasekharan & Sumit Garg – Cleo

Portfolio

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A.R.P Capital Partners

www.arpcapitalpartners.com

Partnered: 2013

Status: Current

 

AnchorLight

Anchor Light

Partnered: 2015

Status: Current

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Ascentia Home Health

www.ascentiahhc.com

Partnered: 2010

Status: Past

Full service home healthcare provider.

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Asset Recovery Corporation

www.arrowvaluerecovery.com

Partnered: 2006

Status: Past

Data security and IT asset disposition.

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Beacon Tree Capital

www.beacontreecapital.com

Partnered: 2014

Status: Current

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BOMI

www.bomigroup.com

Partnered: 2009

Status: Past

Healthcare logistics solutions for Central & South America.

Cleo

Cleo

www.cleo.com

Partnered: 2012

Status: Current

Enterprise software solutions for managed file transfer needs.

Cloud Capital Final

Cloud Capital Management LLC

cloud-capital.com

Partnered: 2008

Status: Current

Registered investment adviser focused on ERISA Plans.

Convex

Convex Investing

www.convexinvesting.com

Partnered: 2014

Status: Current

 

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D&S

www.ds-schiffahrt.de

Partnered: 2008

Status: Current

Electronic security in Germany.

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Data Fusion Technologies

www.dftech.com

Partnered: 2009

Status: Current

Enterprise data analytics and reporting.

DCI

DCI

www.dci-design.com

Partnered: 2014

Status: Current

Data, voice, and technology services for the hospitality industry.

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dESCO

www.desco-soft.com

Partnered: 2014

Status: Current

Field Service Management software products and services.

District Line Partners

District Line Partners

www.districtlinepartners.com

Partnered: 2013

Status: Current

 

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Eyewitness Surveillance

www.eyewitnesssurveillance.com

Partnered: 2011

Status: Past

Remote, interactive security surveillance and monitoring services.

EZR1

EZ Shipper Racks

www.ezrack.com

Partnered: 2015

Status: Current

Nation’s leading supplier of recoverable shipping and display racks to the lawn and garden industry.

Gallowae

Gallowae Group

www.gallowae.com

Partnered: 2013

Status: Current

HorizonView copy

Horizon View Capital

www.horizonviewcapital.com

Partnered: 2014

Status: Current

LundVanDyke

Lund Van Dyke

www.lundvandyke.com

Partnered: 2014

Status: Current

In-home behavioral specialists for children with Autism Spectrum Disorders.

Mon

Montserrat Capital

www.montserratcp.com

Partnered: 2014

Status: Current

Nusantara

Nusantara Partners

www.nusantaracapital.com

Partnered: 2014

Status: Current

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PEC Safety

www.pecsafety.com

Partnered: 2014

Status: Current

Safety and skills training for the oil and gas contractor workforce.

 

 

PoplarPartners

Poplar Partners

www.poplarpartners.com

Partnered: 2013

Status: Current

 

rowland

Roland Equity Partners

www.rolandequity.com

Partnered: 2014

Status: Current

Scottish American

Scottish American

scottishamerican.com

Partnered: 2009

Status: Current

Excess and surplus insurance wholesaler.

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Solamere Advisors

www.solamereadvisors.com

Partnered: 2009

Status: Current

Registered investment advisor managing pension plan and high net worth assets.

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Trumpet Behavioral Health

www.tbh.com

Partnered: 2009

Status: Current

Behavioral treatment for autism.

Trumpet Ventures_web

Trumpet Ventures

Status: Current

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UCIT Online

www.ucitonline.com

Partnered: 2010

Status: Current

IP-based video surveillance systems for construction and industrial sites.

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United Layer

www.unitedlayer.com

Partnered: 2009

Status: Current

Co-location hosting and managed hosting services.

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Veri-Tax

www.veri-tax.com

Partnered: 2010

Status: Current

Online verification services to help lenders process income info faster.

The portfolio companies identified and described herein do not represent all of the portfolio companies purchased, sold or recommended for funds advised by Peterson Partners.
The reader should not assume that an investment in the portfolio companies identified was or will be profitable.

“Peterson has been far more than an investor since the inception of our search. Peterson has acted as true partners and advisors as we narrowed in on an acquisition and have continued that support on our board as we run and grow this business. Given our business has had both opportunities and challenges, both of which require difficult decisions, we are far better off having had and continue to have Peterson Partners on our team.”

Rush McCloy & RT Arnold, Eyewitness Surveillance

Team

Joel1

Joel Peterson

FOUNDING PARTNER & CHAIRMAN
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Aaron

Aaron Gabbart

VICE PRESIDENT
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