The search fund model is an ideal investment vehicle for Alaska Native Corporations. This is especially true for Alaska Native Village Corporations which seek to further their economic mission to shareholders while developing employment opportunities within the state of Alaska.
The search fund model was originally developed at Harvard and Stanford Universities to give bright, well educated, hard working MBA graduates an opportunity to develop their skills by running a small business while earning equity and becoming part owners. This model creates an ideal experience for talented shareholders to develop an owner mentality while learning the broad skill set necessary to run a business in today’s competitive economy.
The model has been successfully implemented for ~30 years. “Using conservative assumptions, the aggregate pre-tax internal rate of return of the search fund asset class through year-end 2011 is 34.4 percent. The aggregate pre-tax return on invested capital is 11.1x.” (see Search Fund: 2018 Selected Observations).
By participating as both a search fund investor and an acquisition investor, an ANC shares the risk of the search, shares the risk of the investment, spreads investment over multiple businesses, limits capital needed to invest, supports the state economy, retains businesses in Alaska, and creates a more robust state business community.
We have shared this unique model with ANC Board members and CEOs throughout the state. They have expressed enthusiasm for how the model intertwines with the needs and mission of their organizations. Because of this interest, we have decided to actively offer search and acquisition investment opportunities to ANCs, particularly to forward thinking village corporations seeking long-term Alaskan investments with competitive yields.
Please review this website to learn more about Alyeska International, Inc. Please feel free to contact Brent Fisher for further discussion: [email protected] or 907-250-8554. We look forward to hearing from you.