Key Takeaways
- • Osler, Hoskin & Harcourt LLP analyzes the broadening of entrepreneurship through acquisition (ETA), which now includes self-funded searches, independent sponsors, long-duration enterprises (LDEs), entrepreneurial holding companies and other permanent-capital strategies.
- • Citing the 2026 Search Fund Study by Stanford Graduate School of Business, LDEs (67 analyzed) raise committed capital upfront, with a median of US$20 million from a median of 17 investors, and 96% of LDEs formed in 2023 or earlier had completed at least one acquisition.
- • The article argues long-duration ownership reframes liquidity from "when to sell" to "how investors can obtain liquidity while preserving continued ownership," with governance around distributions, transfers and financings carrying more weight.
Summary
An Osler, Hoskin & Harcourt LLP article examines how acquisition entrepreneurship is evolving beyond the traditional search fund model. Buyers can now pursue a traditional search fund, self-fund a search, raise capital for a specific transaction, partner with a family office, or raise committed capital to build a portfolio over time. The firm notes these models increasingly occupy a continuum between traditional business ownership and institutional private equity.
The 2026 Search Fund Study from the Stanford Graduate School of Business provides one indication of this development. For the first time, Stanford separately analyzes 67 long-duration enterprises, vehicles that raise committed capital around an investment thesis and generally contemplate multiple acquisitions over a longer horizon. The study tracks 862 core search funds formed in the United States and Canada since 1984. According to the article, median committed capital for LDEs was US$20 million from a median of 17 investors. Among LDEs formed in 2023 or earlier, 96% had completed at least one acquisition, a rate the authors caution is not directly comparable to recent traditional search-fund cohorts because LDEs begin with committed capital and a defined thesis. The median LDE had completed two acquisitions.
The article describes a progression from owner-operator to capital allocator. Among LDEs that had acquired a business, 66% of founders initially operated it for a median of two years before shifting toward parent-level activities such as acquisitions, team-building and capital allocation. LDEs may eventually reach a "flywheel" stage in which operating cash flow and leverage fund growth without additional equity for each deal. The authors cite Simon Leith, president of Homepro Pest Control, who described building an acquisition platform with permanent capital over a 20-, 30- or 40-year horizon.
On liquidity, the article cites Bain's report that 2025 was the fourth consecutive year of record-low buyout distributions. Long-duration vehicles can provide liquidity through distributions, recapitalizations, secondary transfers, selective asset sales or new investors without selling the entire platform. The authors also flag founder succession as a consideration. In M&A transactions, the article notes that 63% of LDEs completing a first acquisition provided equity to sellers, and that sellers rolling into such vehicles may need to consider how and when their retained stake becomes liquid.
The firm observes that as LDEs scale, they can compete with conventional private equity sponsors for founder-owned businesses, while conventional sponsors are also extending hold periods through continuation vehicles. The article also references BDC's $50-million Thrive Entrepreneurship Through Acquisition Fund, which supports women acquiring Canadian businesses.
The 2026 Search Fund Study from the Stanford Graduate School of Business provides one indication of this development. For the first time, Stanford separately analyzes 67 long-duration enterprises, vehicles that raise committed capital around an investment thesis and generally contemplate multiple acquisitions over a longer horizon. The study tracks 862 core search funds formed in the United States and Canada since 1984. According to the article, median committed capital for LDEs was US$20 million from a median of 17 investors. Among LDEs formed in 2023 or earlier, 96% had completed at least one acquisition, a rate the authors caution is not directly comparable to recent traditional search-fund cohorts because LDEs begin with committed capital and a defined thesis. The median LDE had completed two acquisitions.
The article describes a progression from owner-operator to capital allocator. Among LDEs that had acquired a business, 66% of founders initially operated it for a median of two years before shifting toward parent-level activities such as acquisitions, team-building and capital allocation. LDEs may eventually reach a "flywheel" stage in which operating cash flow and leverage fund growth without additional equity for each deal. The authors cite Simon Leith, president of Homepro Pest Control, who described building an acquisition platform with permanent capital over a 20-, 30- or 40-year horizon.
On liquidity, the article cites Bain's report that 2025 was the fourth consecutive year of record-low buyout distributions. Long-duration vehicles can provide liquidity through distributions, recapitalizations, secondary transfers, selective asset sales or new investors without selling the entire platform. The authors also flag founder succession as a consideration. In M&A transactions, the article notes that 63% of LDEs completing a first acquisition provided equity to sellers, and that sellers rolling into such vehicles may need to consider how and when their retained stake becomes liquid.
The firm observes that as LDEs scale, they can compete with conventional private equity sponsors for founder-owned businesses, while conventional sponsors are also extending hold periods through continuation vehicles. The article also references BDC's $50-million Thrive Entrepreneurship Through Acquisition Fund, which supports women acquiring Canadian businesses.
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