For Investors

Co-Invest in Spanish
Search Funds

Spain is the world's #2 search fund market. We partner with family offices, former operators, and institutional co-investors to back Spain's next generation of acquisition entrepreneurs — both individual searchers and search fund partnerships.

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35.1%
Aggregate IRR — Stanford 2024
60+
Completed acquisitions in Spain — IESE 2024
#2
Spain globally — IESE 2024

Why Search Funds in Spain?

Spain's combination of a massive SMB succession gap, lower acquisition multiples than the US, and IESE's institutional backing has created one of the most compelling search fund ecosystems outside North America.

Structural Succession Gap

Over 85% of Spanish companies are family-owned. Less than 30% have a succession plan. The generational handover creates a steady pipeline of quality acquisition targets at fair prices throughout the decade.

Attractive Entry Multiples

Spanish SMB acquisitions typically close at 4–6× EBITDA — meaningfully below the 6–9× range common in the US market. Less institutional competition means better entry points and more negotiating leverage for prepared operators.

Proven Track Record

Spain has surpassed 60 completed search fund acquisitions over 11 years per IESE data. The ecosystem has progressed from proof-of-concept to a mature asset class with institutional backing, specialist investors, and an active alumni network.

Top-Tier Operator Pipeline

Spanish and LatAm professionals with degrees from IESE, IE, LBS, INSEAD, Booth, Wharton, and HBS are increasingly choosing the acquisition path. The talent quality of the searcher cohort continues to rise.

Stable, Cash-Generative Targets

Search funds target established businesses with €1M–€5M in EBITDA, loyal customer bases, recurring revenues, and limited technology disruption risk — the opposite of venture bets.

LatAm Gateway Premium

Spain serves as the natural gateway for Latin American expansion. Operators with dual cultural fluency can build businesses that operate across both markets — a structural advantage unavailable to purely US-focused funds.

What the Research Shows

From the Stanford 2024 Search Fund Study and the IESE International Search Fund Study 2024 — the two most comprehensive datasets available on the asset class.

Metric Result Source
Aggregate pre-tax IRR 35.1% Stanford 2024
International search funds tracked 320+ in 40+ countries IESE 2024
Spain's global market position #2 (after USA) IESE 2024
Completed acquisitions in Spain 60+ IESE 2024

Flexible & Aligned Capital

We are always actively looking to connect with aligned funds, family offices, and search fund investors to co-invest in Spanish SMBs. We don't dictate rigid terms — we believe in building syndicates that compound value over decades.

Let's Start a Conversation

Whether you are an established international fund looking for local operational partners in Spain, or a family office evaluating your first search fund allocation, we are ready to collaborate. We bring local sourcing, execution capability, and operator-first board presence. You bring complementary expertise, capital, and network.

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Operator-First. Permanent Capital. No Fund Constraints.

Most search fund investors are financial capital providers. We are operators first — our principals have personally run PE-backed businesses, negotiated with bank credit committees, managed seller transitions, and built leadership teams in Spanish SMBs.

That operational depth changes how we engage. We do not just write a check and attend a board meeting. We sit with operators when the credit committee pushes back. We help structure the seller earn-out. We make the introduction to the sector expert who unblocks a deal.

  • No fund clock — we hold as long as value is compounding
  • Operator-led board presence on every investment
  • Deep network of individual co-investors in Spain
  • Direct access to Spanish bank financing relationships
  • Spanish and LatAm market expertise
  • Concentrated, selective portfolio — we do not over-diversify
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Frequently Asked Questions

What is the minimum investment to co-invest in a search fund?
Search capital checks typically range from €10,000 to €75,000. Acquisition equity is typically €100,000 to €500,000+ depending on deal size. We do not have a fixed minimum — we prioritize co-investors who bring relevant expertise alongside capital.
What returns have Spanish search fund co-investors historically earned?
The Stanford 2024 Search Fund Study reports aggregate pre-tax IRR of 35.1% across the full asset class. Spanish market data from IESE shows comparable results. Individual deal outcomes vary significantly — the top-quartile of deals substantially outperform the median.
What governance rights do co-investors receive?
All co-investors receive quarterly financial reporting, annual board updates, tag-along rights, and pro-rata rights on follow-on rounds. Lead investors take formal board seats. The exact governance structure is documented in the shareholders agreement signed at closing.
How long is my capital locked up?
Typical holding periods are 5–10 years. Search fund investments are illiquid private equity — there is no public market. We structure co-investors' shareholder agreements to include drag-along and tag-along provisions that protect co-investors in exit scenarios.
Do I need to be based in Spain to co-invest?
No. We work with co-investors based across Europe, the Americas, and beyond. Spanish tax considerations may apply depending on your domicile and investment structure — we recommend consulting your tax advisor on withholding tax and treaty positions.
How many deals does Grupo Santa Marta do per year?
We are deliberately selective. We prioritize depth over breadth — one exceptional operator and business over five mediocre ones. We typically evaluate 40–60 opportunities per year and close 1–2 investments.

Interested in Co-Investing?

Whether you are a family office, a former operator, or an institutional investor exploring the search fund asset class in Spain — we would like to understand your goals and share our current pipeline.

Contact the Team