What Search Fund Ventures does

Search Fund Ventures, LLC is a Chicago-based private equity firm that deploys the Entrepreneurship Through Acquisition (ETA) model to acquire enduringly profitable small businesses, typically with $500K-$5M EBITDA, $1M-$10M revenue, and 10+ years of operating history. The firm targets the lower middle market and applies a selective underwriting process, claiming to review 250+ deals and pass on the vast majority, with an average 3.9x purchase multiple reported as 15% below market. The core investment vehicle is Fund I, which is closed to new investors, with co-investment available to accredited investors through the affiliated SMB Investor Network. The firm is led by Managing Partner Sean Smith (ex-CIBC, $11B+ in transaction experience) and Head of SFV Proprietaries Matt Silva, and is governed under Illinois LLC law.

SFV's product surface extends beyond its fund to an integrated ecosystem. SMB Investor Network is a co-investment platform for accredited investors, requiring minimum investments of $100K+ and offering deal flow, memos, and direct partner access. Lower Market OS is a proprietary dealmaking platform for sourcing and executing lower middle market transactions. Advisory Services provide transaction, operational, growth, and technology transformation support. The SMB Investor brand publishes a newsletter, podcast, and research reports (including a VC-SMB Convergence report and an LP Due Diligence Template) to generate thought leadership and deal flow. AI and automation, CRM modernization, and data analytics are positioned as the value-creation layer applied to portfolio companies after acquisition.

Revenue mechanics rest on three streams: management fees from Fund I (and potentially future funds), carried interest on successful exits (targeting 20-25% IRR, with search funds historically averaging ~30% IRR per Stanford GSB), and transaction-related co-investment fees. The firm targets accredited investors, qualified institutional buyers, and family offices as LPs, and reaches acquisition targets through proprietary sourcing, service provider referrals, and broker/advisor relationships. Geographic scope is the United States, and the company structure suggests independent ownership by the founding/management team with no disclosed parent company or institutional backers.

Name

Search Fund Ventures

Legal name

Search Fund Ventures, LLC

Website

https://searchfundventures.co

Company type

Private

Operating status

Operating

Headcount range

1–10 employees

Short description

Search Fund Ventures is a Chicago-based private equity firm that acquires enduringly profitable small businesses ($500K-$5M EBITDA) using the search fund model, offering Fund I capital, SMB Investor Network co-investment, and AI-driven portfolio transformation to accredited investors.

Ownership category

akta.pro rank

Headquarters

HQ city

Chicago

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Technology or R&D, Infrastructure, Others

Revenue model

1. Fund Management Fees: Management fees from managing Fund I and future funds, with investor eligibility limited to accredited investors, qualified institutional buyers, and family offices meeting SEC requirements.
2. Carried Interest: Performance-based carried interest from successful portfolio company exits. Target 20-25% IRR for investors.
3. Co-Investment Fees: Co-investment opportunities alongside the fund with minimum co-investment of $100K+

Go-to-market motion1 record

Distribution channels5 records

Marketing channels5 records

Core offering

Search Fund Ventures is a Chicago-based private equity firm that acquires enduringly profitable small businesses with $500K-$5M EBITDA through the Entrepreneurship Through Acquisition (ETA) model, then modernizes them using AI, automation, and CRM modernization. The firm manages SFV Fund I for accredited investors and family offices, offers co-investment access via the SMB Investor Network, and supports operators through the Lower Market OS dealmaking platform and institutional-grade advisory services.

Product overview

Search Fund Ventures operates as a private equity firm with an integrated ecosystem of investment products. SFV Fund I is the core private equity fund targeting profitable small businesses with $500K-$3M EBITDA through the Entrepreneurship Through Acquisition model. The ecosystem includes SMB Investor Network (co-investment platform for accredited investors), Lower Market OS (dealmaking platform for deal sourcing), Advisory Services (transaction and technology advisory for operators), and The SMB Investor (research and insights publication). The firm differentiates through technology enablement and AI-first modernization of acquired businesses.

Differentiator

Problem solved

Functional benefit

Brands

• SMB Investor Network: Platform for investing in SMB acquisitions, co-investment opportunities, and deal flow newsletter - part of the Search Fund Ventures ecosystem

Products and services

• SFV Fund I Search Fund Ventures' flagship private equity fund focused on acquiring enduringly profitable small businesses through the Entrepreneurship Through Acquisition (ETA) model, targeting companies with $500K-$3M EBITDA. Closed to new investors; targets a 20-25% IRR for LPs.
• SMB Investor Network A co-investment platform that allows accredited investors to participate in SMB acquisitions alongside the fund, offering deal flow access, full deal memos, direct managing-partner access, and diversified investment opportunities with a $100K+ minimum.
• Lower Market OS A dealmaking platform for lower middle market transactions, providing tools for deal sourcing, submission, and execution for operators and searchers in the SFV ecosystem.
• Advisory Services Institutional-grade advisory services for lower middle market transactions including transaction advisory, operational excellence, growth strategy, and technology transformation for operators and portfolio companies.

Quantifiable outcome

• Average purchase multiple of 3.9x — 15% below market average of 4.6x
• +5 more outcomes

Segments4 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability1 record

Feature3 records

Partnerships

Three partnerships are on record, tiered core and supporting.

• SMB Investor NetworkcoreStrategic or Co-development PartnerAffiliated entity within the SFV Ecosystem. Provides co-investment and platform services for investors seeking to participate in SMB acquisitions alongside Search Fund Ventures. SMB Investor Network enables investor access to vetted deal flow and co-investment opportunities.
• Lower Market OScoreTechnology or IntegrationDealmaking platform within the SFV Ecosystem. Provides proprietary deal sourcing and acquisition execution capabilities for Search Fund Ventures, enabling systematic identification and evaluation of acquisition targets in the lower middle market.
• Service Provider Network (QoE firms, M&A attorneys, insurance specialists, IT consultants, HR advisors)supportingChannel Partner/ Reseller/ DistributorTrusted service providers who serve lower-market transactions. SFV refers portfolio companies and acquisition targets to these partners. Providers receive referrals from active deal pipeline, preferred provider status, and network access.

Scale indicators9 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• Pacific Lake Partners: Lower-middle-market private equity firm focused exclusively on search fund and ETA acquisitions. Both SFV and Pacific Lake target enduringly profitable SMBs with similar EBITDA ranges, and both serve searcher-operators with capital and operational support, making them direct competitors for deals and LP capital.
• MiddleGround Capital: Lower-middle-market PE firm that acquires and operates North American manufacturing, distribution, and B2B services businesses, often partnering with operators. Operates in a similar deal-size band and uses a buy-and-build approach that overlaps with SFV's growth strategy.
• Ardent Capital Partners: Specialized search fund sponsor providing capital and operational support to entrepreneurs acquiring SMBs. Overlaps with SFV on target deal profile ($1M-$10M revenue businesses), ETA methodology, and accredited-investor LP base.

Broad incumbents

• NewSpring Capital: Lower-middle-market PE firm with multiple funds targeting companies with $5M-$150M in revenue. Larger and more diversified than SFV but competes for similar B2B service and product businesses in the lower-middle-market band.
• Main Street Capital: Publicly traded lower-middle-market PE firm making debt and equity investments in $3M-$75M EBITDA companies. A much larger, established incumbent that overlaps with SFV's lower-middle-market niche but serves a broader EBITDA range and more institutional LP base.
• The Riverside Company: Global lower-middle-market private equity firm with a long track record in the same deal range SFV targets. Riverside is a scaled incumbent with deeper operational resources, but its broad portfolio overlaps materially with SFV's investment thesis on enduringly profitable SMBs.

Others

• Quiet Light Brokerage: M&A advisory firm specializing in sales of lower-middle-market e-commerce and SaaS SMBs. Functions as an intermediary that SFV's deal team may partner with for deal sourcing rather than a direct competitor for capital.
• BizBuySell: Largest online marketplace for SMB business-for-sale listings in the US. Represents one of many deal-sourcing channels SFV's Lower Market OS platform may integrate with or compete against for buyer/seller attention.
• Percent.com: Private credit platform that matches investors with SMB and search-fund deal financing. Nelson Chu (SFV advisor) founded Percent.com. Provides enabling debt capital that complements SFV's equity investments, making it an ecosystem participant rather than a direct competitor.

Emerging players

• Acquire.com: Online marketplace for buying and selling small/medium businesses, primarily serving SaaS and tech-enabled SMBs. Adjacent to SFV's deal-sourcing channel — both target SMB acquisitions but Acquire operates a marketplace model rather than a fund.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights6 records

Customer concentration

• YouTubeyoutube.com/@smbinvestor
• LinkedInlinkedin.com/company/searchfundventures
• Xx.com/searchfundvc
• Facebookfacebook.com/searchfundventures

Revenue estimate

Valuation estimate

Number of profiles

Profiles4 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Search Fund Ventures