The SMB Investor

In this in-depth conversation, Sean Smith, Managing Partner of Search Fund Ventures and Founder of SMB Investor Network, sits down with Jon Staenberg, Founder & CEO of Agate Hound Fund, to explore the evolution of search funds and the rise of microcap private equity.Jon shares firsthand perspective from the earliest days of search at Stanford Business School, how the traditional search fund model emerged, and why he views it as microcap private equity with a repeatable playbook. The discussion covers portfolio-style investing through a fund-of-funds approach, diversification and access for investors, and how demographic tailwinds are shaping the future of small business acquisitions.They also examine how the search ecosystem is evolving, differences between traditional MBA-led search and mid-career operators, and why technology and AI may meaningfully improve acquisition diligence, operating efficiency, and long-term outcomes in SMBs.This episode is essential viewing for investors, operators, and anyone interested in entrepreneurship through acquisition and long-term value creation in the SMB market.👉 Subscribe for more long-form interviews on SMB investing and acquisition strategies.💬 Share your thoughts or questions in the comments below.📩 Connect with the speakers:Jon Staenberg LinkedIn: https://www.linkedin.com/in/jonstaenberg/Jon Staenberg Email: [email protected] Hound Fund: https://www.aggathound.fundSean Smith LinkedIn: https://www.linkedin.com/in/sean-smith-47ab2a70/SMB Investor Network: https://www.smbinvestornetwork.com/

In this interview, Sean Smith, Managing Partner at Search Fund Ventures and Founder of SMB Investor Network, sits down with Michael Huseby, founder of The Investment Lawyers, to break down the real-world legal dynamics behind LP agreements, fund structures, 506(c) fundraising, governance rights, waterfalls, fund expenses, and minority protections.Michael shares insights from his work across private equity, SMB acquisitions, real estate, private credit, venture capital, and SPV formation—explaining what LPs should look for, how GPs are negotiating deals today, and why trends are shifting toward cash-flow strategies.Topics covered include:Why Michael left Big Law to start his own firmHis new book Fundamentals and why he “shares the sauce”LP trends: cash-flowing strategies, anchor investors, and GP-stake asksThe rise of 506(c) and recent SEC guidance on accreditationGovernance: top protections LPs should check for in documentsFund expenses: what’s reasonable, what’s notWaterfall structures: simple to advanced, including GP catch-ups and dual waterfallsHow LPs should evaluate liquidity, continuations, and riskKey pitfalls LPs commonly miss in documentsWhy clear marketing disclosures protect GPs from securities issuesLooking for an specific minute?00:00 Introduction to Limited Partnerships and LP Agreements02:39 Transitioning from Big Law to Independent Practice05:33 Current Trends in Investment Strategies08:19 Understanding GP Stakes and Investor Influence10:59 The Shift to 506C and Public Fundraising13:25 Governance and Minority Protections in Investment Documents16:28 Key Considerations for Limited Partners19:09 Liquidity and Fund Structures21:35 Understanding Fund Expenses24:41 Waterfall Structures in Fund Distributions36:15 Conclusion and Resources for Further LearningIf you're an investor, operator, or GP raising capital, this episode delivers a practical, plain-English deep dive from one of the most active fund attorneys in the SMB and alternatives ecosystem.👉🏻 Subscribe for more interviews like this and share your thoughts in the comments.📩 Connect with the speakers:Michael Huseby – The Investment Lawyers: https://www.til.law/Michael Huseby LinkedIn: https://www.linkedin.com/in/michael-bjorn-huseby/Fundamentals Newsletter: https://www.til.law/#newsletterSean Smith LinkedIn: https://www.linkedin.com/in/sean-smith-47ab2a70/SMB Investor Network: https://www.smbinvestornetwork.com/

In this episode, Sean Smith, Managing Partner of Search Fund Ventures and Founder of SMB Investor Network, sits down with Ariez Dustoor of NB Group, an experienced independent sponsor with meaningful reps investing in both sponsors and searchers.Ariez shares a rare dual-sided view of the market—how he evaluates deals, how his sector focus evolved, how he builds pattern recognition, and what true discipline looks like in dealmaking. He breaks down the challenges of sourcing, negotiating, and closing transactions, the realities of post-close execution, and what he looks for in leadership teams.Key themes include:Sector specialization in healthcare and multi-location servicesMaintaining discipline through cycles without committed capitalCreative deal structuring and managing “near-death” transactionsPattern recognition and narrowing the investment strike zonePost-close leadership evaluation, strategic planning & professionalizationHow independent sponsors differ from committed fundsCapital raising process, working with placement agents, and LP alignment⚡️ If you’re a searcher, operator, LP, or independent sponsor, this conversation is packed with real-world lessons directly from the trenches.** Subscribe for more conversations like this, and leave your thoughts or questions in the comments.📩 Connect with the speakers:Ariez Dustoor LinkedIn: https://www.linkedin.com/in/ariezdustoor/NB Group Website: http://www.nbgroup.usSean Smith LinkedIn: https://www.linkedin.com/in/sean-smith-47ab2a70/SMB Investor Network: https://www.smbinvestornetwork.com/

In this interview, Sean Smith, Managing Partner of Search Fund Ventures and Founder of the SMB Investor Network, sits down with Robert Graham, Co-Founder of SIG Partners and Co-Founder of Pillar Health Group.Robert shares his journey from HBS to building a healthcare group that grew from $6M in revenue to $130M+, powered by both organic growth and acquisitions.Together, Sean and Robert unpack:The evolution of self-funded search and the role of SBA financing.A new SBA policy that could permanently ban investors with prior 7A loan defaults — and its ripple effects on entrepreneurs, lenders, and small business owners.Investor diligence: debt service coverage, leverage, IRR vs. MOIC, and why “step-ups” can be misleading.Industry heuristics: how to think about recurring revenue, installation, and construction risk in trades and building services businesses.What investors should consider when evaluating cost of capital, revenue buckets, and risk-adjusted returns.This conversation highlights both the opportunities and challenges ahead for searchers, operators, and investors in the SMB ecosystem.👉 Subscribe for more interviews with leading investors and operators in SMBs.💬 Share your thoughts in the comments — how do you see SBA changes impacting the space?Connect with the speakers:Robert Graham (LinkedIn): https://www.linkedin.com/in/robertelliotgraham/SIG Partners: sigpartners.comPillar Health Group: https://www.pillarhealthgroup.com/Sean Smith (LinkedIn): https://www.linkedin.com/in/sean-smith-47ab2a70/SMB Investor Network: https://www.smbinvestornetwork.com/

In this interview, Sean Smith (Managing Partner of Search Fund Ventures & Founder of SMB Investor Network) sits down with Jacob Hall, Founder of Kando Capital, to explore the fundamentals of investing in small businesses through self-funded search and independent sponsor deals.Jacob shares his unique path from Fortune 500 operator to fund manager, his “buy box” criteria, and the red/yellow flags that investors should watch for when evaluating opportunities. The conversation dives deep into:Why operational experience matters more than Wall Street backgroundsHow to define and evolve your investment “buy box”Revenue quality, customer concentration, and key-person riskCreative deal structures: forgivable seller notes, earn-outs, rollover equityHR diligence, culture, and compensation as overlooked risksAligning sellers, buyers, and investors for long-term successThis is a must-watch for anyone interested in search funds, small business acquisitions, or creative capital structuring in the lower middle market.👉 Subscribe for more interviews with SMB investors and operators.👉 Leave your thoughts or experiences in the comments below.Connect with the speakers:🔗 Connect with Jacob Hall: https://www.linkedin.com/in/jacobhall01/🌐 Kando Capital: www.KandoCapital.com🔗 Connect with Sean Smith: https://www.linkedin.com/in/sean-smith-47ab2a70/🌐 SMB Investor Network: https://www.smbinvestornetwork.com/