Operators, board members and investors will evaluate exit opportunities as these arise or when opportune. Timing as well as modality can take on many forms. Some companies are sold to other investors while others are sold to a trade buyer or management. Some companies are sold in whole while others are sold in parts.
We find it interesting to note that academic research demonstrates that syndicated deals in venture capital and private equity do better than deals that have not been syndicated. The fact that the traditional search fund model is structurally a syndicated deal might help to explain its historical performance. Acquisition decisions and negotiations, managing for growth as well as exit timing might be done better when surrounded and supported by multiple investors rather than one.