Sea Breeze Capital (A)

In recent years, there has been growing interest in the entrepreneurial acquisitions sometimes known as "search funds." The concept, which was first referred to as a search fund in the United States, has been appearing increasingly in Europe and other countries, including developing economies in Asia and Latin America. Search funds are based on the idea of finding and acquiring a company as the basis for becoming an entrepreneur. Sea Breeze Capital (A) describes the attempt by Jordi Alves, an MBA graduate from a U.S. business school, to start the first search fund in Spain, his home country. The process has taken longer, and has been much tougher, than he expected. At the time of the case (spring 2011), Jordi is frustrated. He is aware that Spain is facing more serious and more lasting economic problems than were previously anticipated. He questions whether he will still be able to deliver the returns required by his investors given the current market conditions and whether Spain is still the right place to pursue his search fund.