Peter Lynch Profile picture
Investor (mostly Private Equity). Sharing knowledge about acquisitions. https://t.co/4hs6cyAlNQ.
Jul 25, 2022 5 tweets 3 min read
The probability that you make money (carried interest) on a search fund?

2 out of 3 search funders close on a deal, and of those that close, 73% realize a gain. Which means that less than half (~48%) make it to this stage. #privateequity #searchfund Image Lower ROI outcomes are associated with shorter hold periods (per the chart), but if you assume an 8% pref and average hold of 5 years, then carried interest is earned above a 1.5x MOIC.