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Gerald Edelman has advised on 19 Entrepreneurship Through Acquisition (ETA) and search fund transactions in the year to August 2025, more than double the nine deals completed in the previous 12 months.
A third of those transactions took place in the healthcare sector, while the rest covered industries including industrials, water treatment, engineering, IT services, environmental consulting and manufacturing.
The traditional search fund model, first developed in the US in 1984, has gained traction in the UK as a mutually beneficial solution for buyers, sellers and investors. For entrepreneurs, it provides the opportunity to own, manage and grow a small or medium-sized business while avoiding many of the risks of starting one from scratch.
Carl Lundberg, chief executive of Gerald Edelman, said: “The continued rise in ETA and search fund transactions reflects greater awareness through leading business schools, a wave of baby boomer owners seeking succession solutions, and increasing investor interest.
“We enjoy working with ambitious searchers whose entrepreneurial spirit aligns with our values, and what makes this work especially rewarding is the collaborative relationships we build.”
Lundberg also said the growth in deal activity is being driven not only by traditional search funds but also by alternative models.
He added: “The success and growing awareness of traditional search funds in the UK has fuelled the rise of other ETA models, such as self-funded searches, serial acquirers operating under HoldCo structures, and similar approaches.
“While the number of active UK traditional search funds continues to grow, these alternative models have largely driven the surge in transaction volume. It’s important for new investors to understand that success in this space is not just about financial returns, but also about embracing the ethos of mentorship, patience and a long-term mindset.”
