May 5, 2014
Listen here. Aired on NPR's Morning Edition.
Alex Livingston (l) and Eddie Santillan (r), on the hunt for a company. Photo: Isabel Angell
Every time you do a story about rich people, or graduates from elite business schools, listeners complain. They're duly doing that in the comments under this NPR story of mine, which aired this morning on Morning Edition. The piece is about a weird little corner of the investing world known as search funds. Here's how it works: a group of investors doles out hundreds of thousands of dollars to a business school graduate or two who wants to find a company to buy and grow. If the company does well, the investors can potentially make a lot of money. Meanwhile the young guys (and they are virtually all guys) get a taste of CEO-ship and gain experience running a company and, they hope, making it more successful. It may sound nuts (why would any investor in their right mind bet on a person rather than an idea?) but it's an actual thing, and it's becoming more popular.