Among the most diverse types of investment funds, the search fund not only requires an in-depth analysis of the company to be acquired, but is also related to entrepreneurship.

Search funds are investment funds designed to acquire a single company. In this context, the fund manager is responsible for managing the company, thus becoming an entrepreneur. As with any investment, the objective is growth to obtain a financial return. This implies a preference for middle-market companies, which include small and medium-sized companies with significant growth potential.

Although the search fund model emerged in the US in the 1980s, there are still few such funds operating in Brazil. In Brazil, preference is given to companies with annual revenues between R$20 million and R$100 million, and which are profitable.

Because they're focused on the acquisition and growth of a single company, they have a long investment horizon, until the manager and investors decide it's time to sell the company and realize the fund's investment. Furthermore, managers may decide to maintain their stake in the company, potentially receiving dividends.