“Search Funds” offer entrepreneurs the opportunity to become CEOs of companies where they will have an equity interest. 

By JOSÉ ÁNGEL DE LA PAZ | EGADE BUSINESS SCHOOL

The Center for Innovation and Entrepreneurship (CIE) of EGADE Business School - Tecnológico de Monterrey announced the launch of its new acceleration program under the Search Fund model, an acquisition entrepreneurship alternative.

Search Funds offer entrepreneurs the opportunity to become CEOs by acquiring a percentage of the equity of an existing company, traditionally between 20 and 30 percent.

The EGADE Search Fund Accelerator seeks to support entrepreneurs who are inexperienced in the private equity industry, through resources such as access to mentoring, connection with potential business sources and investors, and guides and methodologies in Mergers and Acquisitions (M&A) processes.

It also serves as a networking platform within the entrepreneurial ecosystem by facilitating the process of identifying qualified buyers for entrepreneurs who wish to sell their companies.

The announcement was made by Félix Cárdenas, Director of CIE, within the framework of the center’s Business and Networking Meeting, held at the Club Industrial in Monterrey.

“With our business accelerator, which includes the principles of a Search Fund and adapts them to our region, we will positively impact the generation of business and investment opportunities and promote a company acquisition ecosystem in order to boost economic growth,” he assured.

Within the event, Cárdenas presented the CIE’s most relevant initiatives in 2021 and the projects planned for 2022. 

The meeting was opened by Osmar Zavaleta, Interim Dean of EGADE Business School, and included two panel discussions.

The first panel “Corporate Venture Capital (CVC) Investment Strategies and Interests in Mexico” was moderated by Liliana Reyes, CEO of the Mexican Association of Private Capital (AMEXCAP), and enjoyed the participation of Ana Maury Aguilar, VC Investor at AC Ventures; Mauricio Ballesteros, Retail

Banking Director at Hey Banco, and Enrique M. Zambrano, Principal at Proeza Ventures.

The event closed with the panel "Search Fund Challenges and Opportunities in Mexico", moderated by Cárdenas, and with the participation of Francisco J. Elosúa, co-founder and Managing Partner at Linden Equity Partners, Guillermo Farías, partner of Ascendis Capital, and Alejandro González, co-founder of Olmo Capital.

The event was attended by key participants of the entrepreneurial ecosystem, including entrepreneurs, members of corporations, investors, and family offices, as well as government officials from the United Arab Emirates.

EGADE Business School's Center for Innovation and Entrepreneurship aims to provide a platform for forming close ties between students, entrepreneurs, corporations and investors, integrating them into an ecosystem that promotes innovation and entrepreneurship, generating relevant knowledge for value creation.