Moonbase Capital

Dubai friends and GITEX attendees! You're invited to join us for the exciting launch of Moonbase Capital's second investment vehicle - a $15 million fund! Join our Founding Partner Ibrahim Abdel Rahim, along with our new Managing Partners Tarek El-Gammal and Tamer El Bahay as they lead the signing at the MOU stage and unveil this exciting new chapter. 📅 When: Wednesday, October 16th, 4:15 PM 📍 Where: Digital Cities Hall, Stand 16-2, Dubai World Trade Center We look forward to connecting with you there!

In the past decade, the spotlight has been on tech startups, and while they’ve attracted significant attention, my passion has always been with SMEs. Having managed SMEs since 2005, and invested in both SMEs and tech startups since 2018, I’ve gained a deep understanding of both worlds. After completing my Private Equity Program with Wharton, I had the opportunity to launch a venture capital fund. However, I chose a different path - one that aligns more closely with my investment philosophy and risk appetite. Instead of following the crowd, I’ve launched an investment vehicle focused on solid, low-risk SMEs in growing markets. Through my experience investing in both tech startups and SMEs, I’ve been fortunate to see positive returns in each. But I can confidently say that 𝐭𝐞𝐜𝐡 𝐬𝐭𝐚𝐫𝐭𝐮𝐩 𝐢𝐧𝐯𝐞𝐬𝐭𝐢𝐧𝐠 𝐢𝐬 𝐧𝐨𝐭 𝐟𝐨𝐫 𝐦𝐞. 𝐓𝐡𝐞 𝐥𝐞𝐯𝐞𝐥 𝐨𝐟 𝐫𝐢𝐬𝐤 𝐯𝐞𝐫𝐬𝐮𝐬 𝐫𝐞𝐭𝐮𝐫𝐧 𝐬𝐢𝐦𝐩𝐥𝐲 𝐝𝐨𝐞𝐬𝐧’𝐭 𝐟𝐢𝐭 𝐦𝐲 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐲. While my view may differ from the mainstream, I’m not alone - and our community of like-minded investors is growing. My investment vehicle is designed with very specific criteria to target companies that offer stability and growth potential, including: ► EBITDA between €1-5 million ► High profit margins ► Fragmented industries ► Low customer concentration ► Low CapEx requirements ► Recurring revenue ► Clear growth potential ► Supported by industry tailwinds ► Simple operational models ► Motivated sellers I didn’t invent this approach - it’s rooted in a model developed by Stanford University. Over the past 30 years, Stanford has closely monitored this asset class, which has consistently outperformed many others, delivering an impressive 28% IRR on average over three decades. This path may not be the one that’s hyped, but it’s proven, stable, and built for sustainable growth.

I’m excited to attend the 6th International Search Fund Conference at IESE Business School in Barcelona on October 10-11! In my new role at Moonbase Capital, I’m eager to connect with search fund entrepreneurs and fellow investors. If you’d like to set up a meeting, feel free to send me a PM. Looking forward to seeing you in Barcelona!

Could search funds solve Italy’s succession problem? Only 30% of family businesses in Italy survive into the second generation, and a mere 13% make it to the third, underscoring the urgent need for better succession planning. Over the past decade, the number of business owners over 70 has increased by 25%, while the number of younger leaders (aged 18-29) has declined. Despite these challenges, SMEs remain the backbone of Italy's economy, contributing 64.4% of the country’s value-added output - well above the EU average of 56.4%. In this context, we’re excited to present a deep dive into the Italian search fund ecosystem, exploring everything from the history of the asset class to taxes, operational costs, and much more. A special thanks to Luca Di Chiano for his thorough research and insights in this article he authored.

We’ve read the 2024 International Search Funds published by IESE Business School - here are the key highlights: 2023 was a 𝗿𝗲𝗰𝗼𝗿𝗱-𝗯𝗿𝗲𝗮𝗸𝗶𝗻𝗴 𝘆𝗲𝗮𝗿 for international search funds: - 59 new search funds launched - 31 acquisitions completed - Total funds: 320 across 40 countries The 𝘀𝘂𝗰𝗰𝗲𝘀𝘀 𝗿𝗮𝘁𝗲 𝗼𝗳 𝗮𝗰𝗾𝘂𝗶𝘀𝗶𝘁𝗶𝗼𝗻𝘀 𝗵𝗮𝘀 𝗶𝗺𝗽𝗿𝗼𝘃𝗲𝗱: 79% of funds led to acquisitions (↑ from 63% in 2022) 𝗧𝗼𝗽 𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝗶𝗲𝘀 𝗶𝗻 𝗳𝗼𝗰𝘂𝘀: - Technology (80%) - Manufacturing (68%) - Healthcare (65%) 𝗔𝘄𝗮𝗿𝗲𝗻𝗲𝘀𝘀 𝗮𝗯𝗼𝘂𝘁 𝗶𝗻𝘁𝗲𝗿𝗻𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗵𝗮𝘀 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗲𝗱, reflected in a more diverse pool of principals and a shift away from traditional US MBA graduates: - 7% female principals (slight increase) - 42% US MBA graduates (↓ from 50%) - 35% of new funds are partnerships (vs. 19% in US/Canada) Despite slightly lower returns compared to US and Canadian search funds, the international market continues to expand, signaling promising opportunities in various regions and industries. 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗽𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲: - Overall ROI: 2.0x - IRR: 18.1% - Top performers reaching 31.4x As the international search fund market matures, we're eager to see how recent acquisitions perform and if more exits materialize. This could significantly boost overall returns and attract even more interest in this growing asset class. What are your thoughts after reading the report? P.S. Full report available here https://lnkd.in/dsV_ac-N

The next generation in India is increasingly choosing to build their own identity, often in tech-driven or creative sectors, rather than taking over their parents' businesses. In a recent interview for our Search Fund Squared Newsletter, Rehan Netarwala challenges the notion that Indian SMEs must stay within the family. "I recently met a seller whose two sons have already launched their own venture-backed startup, showing no interest in taking over the family’s brick-and-mortar business. I’ve seen this shift personally as well - my wife’s father owns an SME, but she chose to start her own fashion design business instead." Rehan founded Okintek Capital after successfully exiting his accounting outsourcing firm, which catered to over 500 SME clients. Now, with this wealth of experience, he’s on the lookout for an SME to acquire in Mumbai and its surrounding areas, including Maharashtra and Gujarat. Read the full interview for his insights on India’s debt financing landscape for search funds, current valuations, and how he intends to leverage his industry experience throughout the search process.

Dubai, here I come! Really excited to be speaking at Fintech Surge 2024, as part of GITEX GLOBAL Largest Tech & Startup Show in the World! I'll be tackling the topic of exit strategies for SMEs, drawing on my experience as an entrepreneur and that as an investor in search funds. By the way, for those who want to join the event, you can get 25% off with code FINGTX25. Register here: https://lnkd.in/dPnYzz_8 #FintechSurge2024

Big thanks to Georgetown University students who attended my talk last Saturday! 👏 It was a pleasure to be part of SEETA 2024 😊 Great organization and very impressive turnout - around 500 people in the auditorium! I hope I managed to shed some light about global search funds for the students - let me know in the comments!

  Last night, the Legatum Center’s Executive Director, Dina H. Sherif, alongside the Director of Fellowships and Global Initiatives, Haitham Khoury, Ph.D., officially welcomed the 17th Cohort of Student Fellows for the 2024-2025 academic year. The fellows introduced themselves to each other for the first time, while sharing their enthusiasm about entrepreneurship as a means to achieving prosperity across global growth markets.   We were honored to host a special guest speaker, Ibrahim Abdel Rahim of Moonbase Capital, a search fund based out of Barcelona, Spain. Ibrahim shared his journey from being a Consultant at McKinsey to growing his family business in Egypt, until it was acquired by a multinational. Ibrahim spoke candidly about some of the challenges he faced as a CEO in a growth market. One of the core take aways from Ibrahim’s talk, was the importance of being humane and fair as a CEO. Business should not be transactional. When your team feels that they are a significant part of the story, they will not just be loyal, but they will also be more productive.    The transition from being the CEO of his family business to establishing Moonbase Capital, which is quickly becoming a well-known search fund in Europe, was a perfect marriage between the operational skills of a CEO, the ability to give strategic advice (learned through McKinsey) and a deep understanding of the investment landscape.    We are grateful to Ibrahim for joining us in our first seminar of the semester and are excited to see all of the amazing stories that will emerge from this year’s cohort of Legatum Center Student Fellows!    Emilio Alvarez-Flores, Jayashabari Shankar, Shreeansh Agrawal, Akorfa Dagadu, Ritika Jain, Ethan Harrison, Muele Barisua Wilcox, ACCA , Sofia Chiappero, Toritse David Maroh, Mohamed Aburawi, MD, Pablo Mejía Sanclementeía,  Shakul Pathak, Perseverance Patsika, CFA and Karen Tucker

The time has come! Join us tomorrow at our 2024 Southeast Entrepreneurship Through Acquisition (SEETA) Conference. This is a unique opportunity to explore the dynamic ventures shaping the future of acquisition entrepreneurship. I’m excited to represent Georgetown Entrepreneurship and can't wait to connect with fellow innovators and leaders. Learn more about the event and join us: (https://lnkd.in/eYd3bCEF) #ETA #entrepreneurship #venture #acquisition #Georgetown #SEETA2024