Helping entrepreneurs locate and take over businesses without succession plans

A record 88 search funds were launched in the US and Canada in 2018 and 2019, according to a 2020 study by the Center for Entrepreneurial Studies at Stanford Graduate School of Business. Since 1984, more than $1.4 billion of equity capital was invested in traditional search funds and their acquired companies. The aggregate pre-tax internal rate of return for investors was 32.6% through to the end of 2019. 

The concept is less developed outside of North America, but is growing in popularity, with 50 new international search funds raised in 2018 and 2019, of which just under half were in Europe. 

Instant impact 

Monestel, who spent 10 years working with large international clients in the retail and consumer goods industry as a consultant, discovered she was more interested in running a small-and-medium-sized enterprise (SME) during her EMBA at IMD in 2008. 

“When you are part of a big corporation, even if the work is interesting and it’s a great environment, you still feel that you are just a number somewhere and not having a big impact on operations,” she said. By gaining equity in a company, you really feel that you can change things and transform the organization, she explained. 

The program also taught her that she wasn’t interested in starting her own company. “During my EMBA, we went to visit a VC in California to present case. It was super interesting, but I didn’t feel I could leverage my skills and experience as much in a start-up as in a SME” 

First alumna 

Monestel is the first IMD alumna to be recruited onto the ETA program run by Novastone Capital Advisors (NCA), which was set up by Trukhina and Malek in 2019. Despite their similar backgrounds, there were no short-cuts and Monestel had to complete a rigorous selection process. 

“Vanessa has 20 years of experience and passion for operational excellence. She has the perseverance of an entrepreneur, and she really takes ownership of what she does,” said Trukhina, highlighting Monestel’s strength in pulling people around her into learning and improving.  

“Vanessa is a type of a leader that make things happen, and we are delighted to have her as part of the program and we will work together with her to help her on her entrepreneurial path.”  

Unlike her earlier experience with a privately owned company, Monestel said the program gave her security as there was a strong partnership with an investor from the start who also provided guidance and mentorship.