What is your average cheque size?
We typically invest anywhere from $500K-$3M USD. We have capacity to write larger cheques out of the family office, and we have the flexibility to offer growth equity as well.
What geography’s do you invest in?
Our two core geographies are USA and Canada. We also invest selectively in the UK and Australia.
What percentage of the cap table do you like to take?
We are flexible for the most part, but we usually represent anywhere from 10-20% of the cap table, depending on the searchers needs and the amount of value that we feel that we can add to their search.
What type of search fund models do you invest in?
We primarily invest in traditional searcher and will invest in select self-funded deals where investors have control of the board. We also invest in compelling equity gap or growth equity opportunities in search companies. We currently do not invest in independent sponsors or entrepreneur in residence models.
How many searchers do you invest in each year?
We invest in up to ~12 searchers per year. We have no plans to increase this number materially.
How do you like working with searchers during the search process?
We take a flexible, searcher led approach to our involvement during the search stage. Typically, searchers find it most helpful to have monthly calls during their search to discuss strategy, what has and hasn’t been working, talking through industry thesis and reviewing any live deals. Some searchers find more involvement from Hadley helpful, and we are always happy to provide as much support as needed.
Do you have board capacity?
Yes, both River and James have lots of ability and willingness to sit on boards where they feel they can add value.
Do you have any industry preference?
We are industry agnostic, so long as the company in question is a right fit for the searcher and the company displays all of the typical search fund characteristics such as enduringly profitable, recurring revenues, strong EBITDA margins, high switching costs, etc. We want to make sure that the acquisition thesis makes sense, and that the company is the right fit for the searcher.
What do you expect of partnered searchers?
We expect all partnered searchers to have a partnership agreement between them. This does not have to be a legally binding document, but should include how you plan to operate, what happens if you break-up, etc.
What do you expect for self-funded searchers?
We expect self-funded search deals to have a board that is controlled by third-party investors, a reasonable common equity split between the investors and searcher, and a value aligned equity vesting schedule/equity terms.
