The search fund model has long intrigued me, and learning about it was the impetus for my applying to HBS. It’s an interesting approach that merges entrepreneurship, investment discipline and capital allocation, and operational leadership. Originating at Stanford in the 1980s, it has matured into a well-recognized path in the United States for aspiring entrepreneurs seeking to acquire and operate small, privately held businesses. For decades, however, the strategy remained largely absent from the Nordic landscape (as I wrote about previously). That is now beginning to change. A quiet but growing transformation is underway, as more individuals across Sweden, Norway, and Denmark begin to discover and explore this model, bringing it into a new regional context with strong potential for growth.
The Nordic region presents all the right ingredients for the emergence of search funds. The demographics are particularly compelling: in Sweden, 43% of small-business owners are over the age of 55, and 17% have already passed the traditional age of retirement, representing approximately 47,000 businesses likely to require succession in the coming years. Many of these owners are not necessarily seeking the highest bidder, but rather a thoughtful transition, i.e. a successor who will preserve what they’ve built, retain employees, and continue operating with care and ambition. These preferences align precisely with the values that underpin the search fund model: long-term stewardship, operational involvement, and alignment of incentives between the entrepreneur and former owner.
Despite the favorable conditions, search funds in the Nordics have until recently been almost entirely absent. A few isolated examples have surfaced over the past decade, but widespread adoption has lagged behind the U.S. experience. One of the earliest and most notable cases is NS Intressenter, founded by Nicklas Storåkers and Mikael Lindahl. Though they didn’t initially identify with the term “search fund,” their strategy mirrored its core principles: raise capital to fund a search, identify an acquisition target, and step into operational leadership. Their acquisition of PriceRunner in 2016 for over SEK 650 million became a landmark case, the first clear demonstration of how a search fund-style approach could succeed in a Nordic setting. They applied focused operational improvements, streamlined governance, and invested in IT infrastructure, achieving a successful transformation that underscored the model’s viability.
What followed has been a gradual but visible increase in interest. Over the past two years, I’ve seen and had conversations with numerous Swedes, Norwegians, and Danes, many of them MBA students or former operators, exploring ETA as a potential next chapter. There are numerous individuals launching self-funded searches in Stockholm and even a team in Norway that recently launched the region’s first traditional search fund, in the sense that it is traditionally understood. This isn’t theoretical exploration any more; it’s a growing movement of talented people choosing ETA over more traditional options, backed by the belief that this model offers both financial upside and meaningful personal fulfillment.
One of the key differences between the U.S. and Nordic environments is the presence – or absence – of a mature support ecosystem. In the U.S., searchers benefit from fund-of-funds which not only provide capital but also mentorship, networks, and best practices. Legal professionals, consultants, and former searchers play essential roles in supporting the next generation. This network effect, the so-called “flywheel”, has been instrumental to the model’s success. In the Nordics, we are still in the early days. Outside a few individuals and family offices willing to explore direct investment, there is no comparable institutional infrastructure. That’s not to say there aren’t FoFs interested in the region. There are numerous further south in Europe as well as a few with a global mandate. However, continuing to build this ecosystem will be essential to unlocking the full potential of ETA in the Nordic region.
What is clear, however, is that demand is coming. Scandinavian MBA students in the U.S. are increasingly exposed to ETA frameworks through formal coursework, alumni communities, and extracurricular platforms. Many are returning home with a vision for launching searches, but still face uncertainty around how to raise search capital, where to find mentors, and which local advisors understand the model. For investors, this presents a compelling opportunity: to position themselves early as the go-to capital partners for ETA in the Nordics.
The timing is right, and the market inefficiencies are evident. I believe there is real alpha in backing talented operators who are willing to search, acquire, and grow overlooked businesses, especially in a region where many of those businesses are still family-owned and under-digitized.
The past twelve months have confirmed that this shift is no passing trend. It represents a structural change in how a new generation of Nordic entrepreneurs approaches business ownership, with a growing preference for acquiring well-run, enduring companies rather than building from scratch.
With continued education, community-building, and capital formation, I don’t see why search funds cannot become a durable and respected asset class in Sweden and the Nordics.
If you’re interested in ETA in the Nordics, please reach out.