Why Search Funds : An Investor's Perspective

Andrew Locke is a search fund investor and co-founder of Ambit Partners, based in South Africa.

Originally from the US, Andrew has worked globally in regions such as West Africa, the Middle East and India as a behavioral economist working with Harvard's econ group. Later in his career, he pivoted to work in private sectors and move back to Africa join in management consultancy in Nairobi that focuses on helping build small businesses around the continent.

He first heard about the search fund model in business school, where he also met one of his current business partners, Niel Wyma, then joined together with Rob Leblanc and build Ambit Partners. Together they have bought 26 small businesses in South Africa. 

In this episode of the Next Step Podcast I chat with Andrew, focusing on the topic of search as an asset class and as an investment model and bringing the lens of an investor’s perspective and why Andrew and his partners invest in the search fund model.

Show notes:

·         01:28 –Andrew talks about his background and career in international development and how he comes to meet the search fund model and build a partnership in South Africa.

·         4:50 –Pete and Andrew talk about how search fund focuses on the people and the talent, also talks about the other process such as reverse search and building capabilities.

·         9:26 –Pete and Andrew talk about how search investors choose which to invest in and how they see the market.

·         13:00 –Pete ask Andrew the U.S. market as the most developed market for search fund, how search investors approach that market, and how searchers compete for investors.

·         17:47-How Pete and Andrew describe the attributes of a good investor and the different processes of investing.


Learn more about Search Fund and entrepreneurship through acquisition and connect with Pete and Andrew:
 Pete Seligman: Linkedin
Andrew Locke: Linkedin

Connect with a global community of searchers

I host a LinkedIn group where business professionals interested in searching for a business to buy and operate can connect, as well as investors and other business leaders who are looking to partner and learn from the community. It's free to join.

Join Linkedin Group

Serious About Searching for a Business to Buy?

Get my 'Search Fund Industry Insights' once a month via email. When you sign up I'll also send you through a comprehensive overview of our 5,5,5 method for evaluating, investigating, and acquiring a business.

We hate SPAM. We will never sell your information, for any reason.