Will search funds find a home in SEA?

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Hello reader,

It’s wedding season in India, with about 3.2 million couples expected to tie the knot between November 14 and December 14. I’ve attended plenty of these grand events, which typically last for around two to four days, so I fancy myself as a bit of a connoisseur of marriage customs.

Apart from the hours of ceremonial prayers, there’s one traditional practice that caught my eye. After days of wearing heavy jewelry and nights of endless dancing, the newlyweds sit down for one last round of games, including one that involves dropping a ring into a bowl or pot filled with milk, dry fruits, and uncooked rice grains.

A chaotic and messy battle ensues as the couple tries to find the ornament, which the winner gets to keep.

Oddly enough, today’s featured piece reminded me of this custom. The premium story discusses search funds and how they allow aspiring entrepreneurs or “searchers” to locate, acquire, and grow small businesses in Southeast Asia. I couldn’t help but draw comparisons between the ring-based game and investment processes used by such funds.

Obviously, a lot more than dumb luck goes into how search funds choose to make their bets, but it doesn’t change how they are also essentially looking for a needle in a haystack, given their preference for established and growing businesses over loss-making tech startups.

Read on to find out more about where search funds have broken ground in Southeast Asia, what lies ahead for them in the region, and what they mean for local entrepreneurs.

Today we look at:

• The rise of the search fund model in Southeast Asia
• The arrest of FTX founder Sam Bankman-Fried
• Other newsy highlights such as JPMorgan’s optimistic 2023 outlook for Southeast Asia’s equity markets and Grab’s new Vietnam head

— Shravanth

P.S.: If you’re an entrepreneur looking for funding, fill out this form to get your company featured on our list of fundraising startups.

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