{"ok":true,"canonical_url":"https://dealroom.so/glossary/search-fund","api_url":"https://dealroom.so/api/public/glossary/search-fund","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"search-fund","term":"Search fund / searcher","aka":"searcher","group":"People and paperwork","definition":"A buyer (often backed by investors) whose full-time job is finding one business to buy and run. A growing share of small-business buyers.","what_it_means":"A search fund raises money from investors to cover a buyer's salary and operating costs during the one-to-three-year search for an acquisition target. When the target is found, the fund typically raises acquisition capital from those same investors. Traditional search funds work in a formal fund structure; self-funded searchers operate with personal capital and a tighter timeline. Both types are increasingly common in the lower middle market and compete with individual buyers for SBA-financeable businesses.","url":"https://dealroom.so/glossary/search-fund","official_sources":[],"related":[{"slug":"business-acquisition-loan","term":"Business acquisition loan","url":"https://dealroom.so/glossary/business-acquisition-loan"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"loi","term":"LOI","url":"https://dealroom.so/glossary/loi"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"}],"related_questions":[{"question":"When is a lender required to conduct an environmental records search for real estate collateral?","url":"https://dealroom.so/for-lenders/questions/when-is-a-lender-required-to-conduct-an-environmental-records-search-for-real-estate-colla"},{"question":"Can an investor fund my SBA 7(a) down payment?","url":"https://dealroom.so/sba-7a/questions/can-an-investor-fund-my-sba-7-a-down-payment"},{"question":"How does life insurance effectively fund a business buy-sell agreement?","url":"https://dealroom.so/sba-7a/questions/how-does-life-insurance-effectively-fund-a-business-buy-sell-agreement"},{"question":"Can life insurance specifically fund a deceased partner's buyout by surviving owners?","url":"https://dealroom.so/sba-7a/questions/can-life-insurance-specifically-fund-a-deceased-partner-s-buyout-by-surviving-owners"},{"question":"Can an SBA 7(a) loan fund initial inventory for a new business?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-fund-initial-inventory-for-a-new-business"},{"question":"Does the SBA 7(a) loan program fund businesses that are just starting out?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-7-a-loan-program-fund-businesses-that-are-just-starting-out"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Search fund / searcher","url":"https://dealroom.so/glossary/search-fund","source_type":"DealRoom Data"}}