What is the future outlook for search funds globally and in France?

The search fund model's future appears robust with significant growth potential driven by structural market trends, increasing awareness, and evolving investor sophistication. Globally, approximately 50 new search funds are launched annually as of 2024, up from negligible numbers two decades ago. This trajectory suggests continued expansion as the model gains mainstream acceptance as a legitimate entrepreneurship path alongside startups and traditional corporate careers. Several macro trends favor search fund growth. The demographic challenge of aging business owners creates enormous succession needs—in Europe alone, millions of SME owners will retire in the coming decade, many without viable succession plans. Search funds directly address this market gap. The professionalization of alternative investments means more family offices and high-net-worth individuals seek direct investment opportunities beyond public markets and traditional private equity. Search funds offer attractive risk-adjusted returns with meaningful personal involvement. The rise of entrepreneurship education in business schools produces cohorts of MBA graduates interested in ownership and operational management but realistic about startup risks. For many, acquiring an established business represents the optimal balance of entrepreneurial ambition and risk management. Technologically, improvements in business information databases, online networking, and virtual due diligence tools make the search process more efficient than when Professor Grousbeck conceived the model in 1984. Searchers can now identify and evaluate targets faster, though the relationship-building aspect remains inherently personal. Geographic expansion will likely continue. While North America and Western Europe dominate currently, Latin America shows strong growth with active communities in Mexico, Colombia, and Brazil. Asia represents largely untapped potential—family business succession challenges in Japan, South Korea, and Southeast Asia mirror European dynamics. Australia and New Zealand are developing search fund ecosystems. Each market adapts the model to local legal, tax, and cultural contexts. In France specifically, the outlook is particularly positive. The succession crisis affecting 80%+ of family businesses creates structural demand that far exceeds current supply of search fund buyers. As successful exits occur over the next 3-5 years providing proof of concept, investor confidence will grow. The professionalization of the ecosystem—specialized law firms, dedicated investor groups, business school curricula—builds infrastructure supporting scaled growth. French government recognition of search funds as a succession solution could potentially lead to policy support, tax incentives, or simplified regulatory processes, though this remains speculative. Challenges exist: increasing competition may raise acquisition valuations, reducing returns; economic volatility from geopolitical tensions, inflation, or recessions impacts small businesses disproportionately; regulatory changes in tax treatment or corporate governance could affect model economics; and the risk of model dilution as less-qualified searchers enter attracted by success stories. However, the fundamental value proposition remains compelling: experienced investors backing motivated entrepreneurs to acquire and grow established businesses addresses real market needs on all sides—sellers gain dignified exits, buyers gain ownership opportunities, investors gain attractive returns, and employees maintain jobs. This alignment of interests suggests the model's core logic will endure even as specific practices evolve.