What is the history and origin of the search fund model?

The search fund model was conceived in 1984 at Stanford University Graduate School of Business by Professor Irving Grousbeck, who served as the Director of the Center for Entrepreneurial Studies. The concept emerged when two MBA students approached Professor Grousbeck with an entrepreneurial ambition: they wanted to become CEOs of established companies but lacked both the capital to acquire a business and the track record to secure traditional CEO positions. Professor Grousbeck designed an innovative solution that would allow these young entrepreneurs to raise capital specifically for the search process, with investors backing the individual rather than a specific business opportunity. This represented a fundamental shift from traditional private equity, where funds identify companies first and then find management. Since its inception, the model has grown significantly. Stanford's Center for Entrepreneurial Studies has tracked more than 600 search funds in the United States and Canada since 1984. The concept has expanded internationally, with IESE Business School in Barcelona, Spain tracking search funds throughout Western Europe, Latin America, and India. The first search fund in France was completed in 2018, and the model continues to gain traction across Europe as an attractive alternative to traditional entrepreneurship and private equity.