Scipio Holding and Swanlaab Venture Factory have joined jointly to introduce the €25 million Scipio Swanlaab SF SCR. This fund intends to take advantage of the expanding opportunity offered by the tens of thousands of family-run small and medium-sized businesses (SMEs) that turn a profit every year but lack a successor when the owner opts for retirement.
The highest-performing asset class over the last 25 years with annual returns above 30%, according to a Stanford Graduate School of Business study, has been search funds. This model includes investing in an individual or team of searchers who will spend two years looking for a business to acquire and then run.
Aitor Sancho, Managing Partner at Scipio Holding, said: “With a little more than 3 years experience under our belt, we needed to move to the next level and launch a regulated investment vehicle if we wanted to take advantage of the huge number of great investment opportunities presented to us. Swanlaab, with their track record in tech investing, share many of our values and were a natural partner for Scipio”
Mark Kavelaars, from Swanlaab, commented: “At Swanlaab, we believe that Search Funds represent a natural complement to our core investment strategies in B2B Software and AgroTech. Through this Fund, our LPs can invest in established, cash-generating businesses at extraordinary valuations. The fund will offer our investors attractive returns that are uncorrelated to other asset classes like private tech or public market investing.”
With a global mandate, Scipio Swanlaab SF SCR will make investments in the Americas, Oceania, Asia, and Europe. Additionally, Scipio and Swanlaab plan to invest in combined businesses that have or can have a significant technological component by utilising their individual technological experiences.
The fund is anticipated to launch operations during the first half of 2024, with a target size of €25 million. It intends to invest in thirty searchers and make twenty acquisitions over a five-year period.
Scipio will get off to a fast start and be able to swiftly allocate its funding to profitable ventures because it has over 20 funded search funds that are actively seeking for acquisition potential customers.
About Swanlaab Venture Factory
Swanlaab, a distinctive multinational team with extensive investment and entrepreneurial experience, was established in 2014 and is based in Tel Aviv and Madrid.
Founders can benefit from Swanlaab’s team’s exceptional B2B entrepreneurial experience as they scale their B2B businesses. Creating a profitable business is a process, not an art.