Jodabit Partners is structured as a traditional search fund - an entrepreneurial endeavor undertaken by an individual who forms an investment vehicle with a small group of aligned investors, some of whom become mentors - to search for, acquire, and lead a privately held company. Jodabit Partners' investors have successfully acquired, operated and grown businesses themselves.
Each investor has committed a discretionary amount to the fund to cover the operating costs of finding a great business. The contributed capital grants them the opportunity to participate in equity financing when a business is found. On acquisition, it is the expectation that Tola's role will transition from search fund operator to CEO of the acquired business, with some investors taking on board roles.
We have patient capital, allowing us to think strategically and focus on long term value creation. Jodabit Partners is able to offer flexible deal terms to support the interests of a seller and the great company they have built.
There are several advantages to working with me compared with other potential buyers or successors for the business:
Search funds have become an increasingly popular route for young entrepreneurs to buy and run an existing operation, with several hundreds having successful outcomes over the past decade. There have been many studies and write-ups conducted by various institutions over the years. Some of them are listed below. I am happy to discuss any additional questions you may have about the model.