Raising capital is not just funding a search. It sets the table for the next decade. Your investors become your partners. They’re your references when lenders or vendors hesitate. Their incentives, response time, and deal judgment compound into your operating reality. Optimising for speed or size alone can hard-wire misalignment for 7 to 10 years.

Screen for investors who shorten cycles and expand options. Build around a few experienced anchors with real follow-on capacity, plus a focused group of value-add investors. Confirm pro rata rights and actual dry powder. Verify they have sat through the full arc before, from LOI turbulence to year-two working-capital squeezes to lender resets.

How to diligence investors:

1. Will they add value?
Investors are not passengers. They become mentors, sounding boards, and referral engines. Prioritise those who can challenge you and want to provide feedback. Bring together investors that add value at different stages—search/LOI, acquisition, and operations. Find investors who support your strengths and, more importantly, offset weaknesses. If you’re a strong operator/sales leader, seek investors who truly support deal structuring and execution.

2. What’s the capital duration?
The brochure says “patient capital,” but real-world LPs have liquidity needs and fund-life constraints. Some investors push for earlier exits to show DPI or because they’re aging out of mandates. Others genuinely prefer long, compounding holds.

3. Where are they based?
Have local investors with deep networks (tax advisors, lawyers, notaries, brokers) to accelerate processes, plus value-add international investors for perspective. Watch tax complexity with more exotic jurisdictions.

4. What type of transactions do they back?
Some prefer software, others B2B services, others prefer growth prospects over a low acquisition multiple. You don’t yet know which company you’ll acquire, so ensure enough diversity around deal-preference on the cap table.

5. What’s their minimum ticket? Can they fill equity gaps?
Equity-efficient transactions are often too small for larger funds; bigger deals need deep pockets. Balance large and small checks.

6. Do they have the capital?
Writing a €30k search unit is very different from coughing up €500k for an acquisition. Some newer investors are drawn to the 1.5x step-up but lack follow-on capacity—resulting in avoidable equity gaps. Ask for their most recent transactions and amounts.

7. What’s their participation rate?
Some investors commit to the search stage mainly for “deal optionality” and don’t follow on unless the deal is “perfect.” A low follow-on rate across their searcher portfolio is a red flag and raises equity-gap risk.

The best searchers walk away from money because they value the next 7 to 10 years more than the next 7 to 10 months. If you are about to launch, slow the raise. Build the cap table. Test the thesis. Tighten the story. When the wire lands, the real work begins. The right capital beats the most capital. Always.

Mentmore Capital Partners - UK

UK-based Mentmore Capital Partners, founded by Xan Lowe and Benjamin Melville, has acquired Rowleys of Northwich, a 44-year-old UK provider of contract hire and fleet management services for commercial vehicles. Mentmore, backed by long-term investors and experienced entrepreneurs, operates businesses directly and partners with incumbent teams to preserve legacy and accelerate growth. Rowleys is known for comprehensive maintenance packages and strong customer service.

Ivona Butcher shares how she and her husband bought an exhibition firm in a small market using local brokers, public data scraping, and soft investor commitments. She walks through bank talks during zero revenue in COVID, a discounted seller note buyback that effectively shaved a turn off price, and the post-COVID rebound, where they tripled revenue and doubled EBITDA. Practical lessons for searchers in less liquid markets and for partner-led teams.

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