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Javier Puig explains how Arada Capital Partners was built as a hands-on search fund investor focused on Europe, using a small-fund model to stay close to each searcher and acquisition. He describes the value of combining consulting, investment banking, and search-fund-specific support, plus the importance of cap table design, mentor selection, and ESG-minded ownership.
Aspiring searchers and ETA investors who want to understand what a value-added search fund backer looks for, how European search investing differs, and how to structure a supportive cap table.
A search fund investor can add the most value by combining deal analysis, LOI negotiation, due diligence, and acquisition structuring support rather than only providing capital.
A deliberately small portfolio lets an investor stay available across the entire search lifecycle, from fundraising and acquisition to operations and exit.
European search investing can be built around succession in SMEs, where the investor thesis is tied to replacing owners with entrepreneurial CEOs.
Alignment works best when investors and searchers share the same exit-oriented objective and maintain a close working relationship over multiple years.
A searcher’s first fundraising conversations should start with close contacts such as former bosses, family, and friends because early believers validate the model before the broader market does.
Mentors and advisors matter most when they are selected intentionally as part of the cap table, not added casually after problems appear.
ESG in search investing is not just environmental; governance and social impact are central because ownership transfers preserve jobs and local business continuity.
A staged fund strategy with successive small funds can preserve the hands-on model while still scaling a platform over time.
Arada’s model combines institutional capital and professional fund operations with a deliberately limited number of search funds so it can behave like a highly engaged private backer. The concept emphasizes access, responsiveness, and long-term support instead of maximizing portfolio breadth.
When to use: Use this model when an investor wants to provide deep operational support to each searcher rather than spread attention across many bets.
Arada expects to close 2023 with partnerships across 17 search funds and four completed acquisitions.
Puig uses this as evidence that the firm’s small-fund, hands-on approach is already producing transactions.
Puig spent more than nine years at an international investment bank in M&A before launching Arada.
He cites this as the source of his diligence, modeling, and deal-structuring skill set.
Arada was founded during his second year of an executive MBA at ESMT.
He describes the timing of his transition from investment banking into search-fund investing.
Arada’s first fund plan is to deploy capital in successive small funds over many years rather than one large platform build.
He frames this as the way to preserve close support for each entrepreneur.
The example acquisition, Livnova, dates to a business originally founded in 2009 in Spain.
Puig highlights the company as a recent acquisition that grew from digitalization services into B2B SaaS for digital preservation.
Start fundraising with people who already know you well, such as former bosses, family, and friends, because early backing is easier when trust already exists.
Why: Puig says those close contacts are the best first proof point for the search-fund path.
Build the cap table around the kind of long-term relationship you want with investors, because the relationship will shape the next several years of decision-making.
Why: He emphasizes that investor alignment and trust matter across the whole search, acquisition, and operating journey.
Use advisors with sector expertise before signing a deal if the target’s niche is unfamiliar, because early expert input can reveal red flags that change the investment decision.
Why: He gives an example where an expert session helped a searcher abandon a deal after identifying concerns.
Choose investors who are comfortable being hands-on but not overbearing, because searchers need support without losing initiative.
Why: Puig argues the best investors add value when invited and let entrepreneurs lead when possible.
Speak with many search-fund participants before committing to the model, because the path is demanding and requires full conviction.
Why: He treats informed commitment as essential given the highs and lows of the journey.
Puig describes Livnova as a Spanish company founded in 2009 that began with digitalization services and later evolved into a B2B SaaS business focused on digital preservation. He says he worked alongside searcher Jacobo Vera through multiple candidate deals before the Livnova acquisition closed, which made the outcome especially meaningful.
Lesson: Deep involvement during the search can make the eventual acquisition both better informed and more aligned between investor and operator.
He shares an example where Arada arranged an expert session between a searcher and an advisor to assess a niche target. The discussion surfaced enough red flags that the searcher ultimately walked away from the deal.
Lesson: Specialized advisors can save time and capital by helping searchers kill weak deals early.