Why We Created Long-Term Hold

August 7, 2023
Coley Andrews
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If You Want to Go Far, Go Together: Why We Created Long-Term Hold

GJ King and Will Bressman were among the very first entrepreneurs that Jim and I backed, back in 2010. It was less than a year after we had founded Pacific Lake, and we were just as excited to invest in them as they were to partner with us. For almost a decade that followed, we watched them build a substantial business in RIA in a Box. After 7 years and at the peak of a bull market, they rightly decided it was time to sell the business to private equity, lock in a huge win for themselves, and generate a top-quartile outcome for their investors. What’s not to like?

We wholeheartedly supported and understood GJ and Will’s decision to sell RIA in a Box. It made sense at that time. During their second act as CEOs, we watched with admiration as the company's growth accelerated and substantial value (beyond what they had already achieved with their search fund investor group) was created.  But, all of that subsequent value accrued to new owners of the business (and of course GJ and Will). 

Theirs was not a unique story in the search fund community.

I saw similar stories unfold with other exceptional search fund entrepreneurs and businesses which we had invested in: Jim Vesterman’s Raptor Technologies, Jay Davis and Jason Pananos’ Vector Disease Control, and Colby Lane’s PEC Safety to name a few. All of these CEOs decided to sell their businesses at a time when they had proved themselves as leaders, and future growth prospects looked strong.  

I started to wonder, what if there were a better way?

This is why we created our Long-Term Hold (“LTH”) strategy in 2018: to extend Pacific Lake’s support to high-performing search fund CEOs, enabling them to realize their long-term potential. LTH provides CEOs with an alternate path to liquidity that resonates with their aspirations, ensuring that they can continue building their companies alongside a team of trusted and valued partners.  

Since launch, we've partnered with 12 CEOs to tailor solutions for their needs and long-term growth objectives. While every entrepreneur and company is unique, Long-Term Hold CEOs have a set of characteristics in common. They are entrepreneurial leaders building durable businesses in industries supported by long-term tailwinds. 

At Pacific Lake, we don't gauge our success by the number of deals done or dollars invested, but by the caliber of the companies we build. We're committed to fostering an environment that empowers CEOs to build substantial companies and create lasting value.  

To the next decade and beyond.

Want to learn more?

Contact us or learn more about how we partner with Search Fund CEOs through Long-Term Hold by reading the story of David Berkal (Banyan Software) or Sam Krieg and Hill Hamrick (Central Storage & Warehouse).

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