How does Sage fit into the Search Fund Model?
The illustration below takes you through the lifecycle of an investment in a traditional search fund from the perspective of the Sage Funds.
Limited Partners Invest $$ into Sage Fund
Sage Fund Invests $$ in Searchers’ Seed Capital Round (approx. 10% of a Searcher’s seed round alongside group of co-investors)
Searcher Utilizes Seed Capital to Search for a Single Company to Acquire (1-2 years)
If Searcher is Successful in Finding Company to Acquire Sage and other Co-Investors from Seed Round Have Option to Invest a Minimum of their Pro-Rata Share in Acquisition (more if investor attrition)
Searcher Acquires and Runs Company for Approx. 3-6 Years
Searcher Exits and Returns Earned by Searcher, Sage and Co-Investors