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Tembo Search Partners focuses on supporting succession entrepreneurs in the German SME sector. What inspired you to establish the firm, and how do you define its mission?
Christian: Throughout my ten years in investment banking, particularly at Metzler Bank, I worked closely with small and mid-sized companies, many of which faced significant challenges in succession planning. I saw firsthand how difficult it was for business owners to find the right successor—someone who not only had the financial backing but also the entrepreneurial mindset to continue their legacy.
At the same time, I became increasingly aware of the search fund model, which offers a unique way to match ambitious, capable leaders with Mittelstand businesses in need of a successor. However, in Germany, there was no structured infrastructure to support searchers or help SME owners understand the concept. That’s where Tembo comes in—we bridge this gap by providing searchers with capital, mentorship, and the operational tools they need to succeed.
Benedikt: For me, the inspiration behind Tembo came from a different angle. My background combines management consulting, entrepreneurship, and executive search, giving me a deep understanding of both the investor and talent sides of the equation. As the founder and CEO of Build My Career, I helped private equity firms, and their portfolio companies identify and develop top-tier leadership talent.
This experience has been invaluable in building Tembo’s unique approach—we don’t just fund searchers, we carefully select, guide, and support them throughout their journey, ensuring they are fully equipped to take over and scale an SME.
Our mission is simple: We invest in people, by empowering the next generation of entrepreneurs to acquire and successfully run businesses. We provide SME owners with a trusted succession solution that ensures the preservation of their company’s legacy. At the same time, we deliver strong, risk-adjusted returns for investors by backing the right people and companies.
That’s why Christian and I founded Tembo—to provide a structured, professionalized ecosystem that ensures success for searchers, business owners, and investors alike.
How have your backgrounds influenced Tembo’s vision, and what kind of support do you provide to searchers?
Christian: My expertise in mid-cap M&A, transaction structuring, and leveraged finance gives our searchers a decisive advantage in navigating the acquisition process. Many come from consulting, corporate management, or operational backgrounds, but they lack hands-on experience in deal structuring, negotiations, and financing. This is where we come in. We provide hands-on M&A support, guiding searchers through due diligence, deal negotiation, and transaction execution. We offer financing guidance to help searchers secure the right mix of equity and debt for a sustainable acquisition. Additionally, we assist in risk management and due diligence, ensuring searchers can thoroughly analyze potential risks and navigate a smooth ownership transition.
Benedikt: What makes Tembo unique is our complementary skillset – Christian’s financial and transactional expertise, and my experience in headhunting and leadership development. We have a rigorous searcher selection process and a deep understanding of what makes a great CEO. We don’t just select searchers based on their CVs—we evaluate their core qualities. We assess their interpersonal skills, ensuring they can build trust with SME owners. Their leadership capabilities are crucial, as they must be able to inspire and manage teams effectively. We look for an entrepreneurial mindset, ensuring they understand what drives profitability and long-term growth. Finally, we prioritize resilience and adaptability, as searchers must be prepared to handle rejection and navigate setbacks throughout the acquisition and ownership journey.
Once onboarded, our searchers receive ongoing mentorship, access to our investor network, and structured support throughout the search and ownership phases.
Could you elaborate on Tembo’s relationship with Münchmeyer Petersen & Co.? How does their involvement enhance your investment approach?
Benedikt: MPC is more than just a financial partner—they bring a level of credibility and authenticity that is crucial when engaging with Mittelstand business owners. Many German entrepreneurs are skeptical of selling to external buyers, especially younger searchers with limited operational experience. Having MPC as a strategic partner reassures sellers and banks alike.
Christian: MPC is a key strategic partner that brings decades of experience in SME investments, restructuring, and long-term value creation. Their involvement significantly strengthens Tembo’s ability to support searchers and facilitate smooth business transitions in the German Mittelstand. With strong relationships in the banking sector, MPC enhances credibility, making SME owners and lenders more comfortable with search fund transitions. Unlike private equity firms, MPC follows a long-term investment philosophy, ensuring stability and continuity post-acquisition. Their hands-on approach in business transformation and governance supports searchers beyond the deal, helping them succeed as first-time CEOs.
How would you define the German Mittelstand market, and what specific challenges do searchers in Germany face when approaching business owners? Why has the failure rate for searches been so high in Germany in the past, and what factors will drive a shift in this trend going forward?
Christian: The Mittelstand is the backbone of the German economy, representing 99% of all German companies and contribute around 52% of GDP. These companies are often highly specialized, with strong market positions, but they face a growing leadership gap due to aging ownership – and over 125,000 SMEs seeking external succession each year.
Searchers in Germany face challenges due to the deep emotional attachment of Mittelstand owners to their businesses, with many preferring family succession. They are often skeptical of young, inexperienced buyers and unfamiliar with the search fund model, making negotiations difficult.
Historically, search fund failure rates in Germany have been caused by limited awareness of the model, strong reliance on owner-led operations, and conservative lending practices that make financing difficult.
Benedikt: Germany’s succession crisis is opening more Mittelstand businesses to external buyers. Growing awareness of the search fund model, better financing options, and increased investor interest are making acquisitions easier. Building trust and relationships is also crucial, as owners are highly selective about their successors and need to see a genuine commitment to preserving their company’s values and employees.
Patience, relationship-building, and long-term vision are what separate successful searchers from the rest. That’s why we place such a strong emphasis on selecting searchers with the right personality and mindset. Additionally, deal structuring is often complex, since search fund acquisitions frequently involve seller financing, earnouts, or creative structures to align incentives between buyers and sellers.
We have seen a dozen traditional SFs launched in Germany last year, with several currently in the fundraising phase. How do you see this model evolving in the German market? Will the emergence of new local German institutional investors drive exponential growth in deal volume?
Christian: Search funds in Germany are at an inflection point. Institutional investors are beginning to recognize the potential of this model, and as we see more successful exits, confidence in the model will continue to grow. However, funding the search phase has become more challenging for new searchers. To address this, Tembo has changed its model to fully finance the search phase internally. This approach removes barriers for searchers and investors alike, ensuring a more efficient process. By shifting investor focus to direct investments in specific targets, we tap into a much larger investor universe, accelerating deal flow and increasing the likelihood of successful acquisitions.
Benedikt: As a result, search funds in Germany are becoming more scalable and appealing to both entrepreneurs and investors. Keeping investors closely involved throughout the search phase ensures they have full transparency on searcher progress, industry focus, and deal pipeline—making them more confident in committing capital when the right target is identified. Our new model is designed to professionalize and scale the German search fund market, ensuring it becomes a recognized alternative for Mittelstand succession in the coming years.
One of your goals was to support five searchers per year. Who are the first two you are onboarding? What does your selection process look like, and what qualities make an ideal candidate for Tembo?
Benedikt: Selecting the right searchers is one of the most critical factors for success. We look beyond just professional experience—while a strong track record in leadership, finance, or operations is important, what truly sets apart great searchers is their personality, entrepreneurial mindset, resilience, and ability to build trust with business owners.
We are thrilled to introduce Hermann Finkeldei and Jasper von Flotow—two exceptional searchers who exemplify what we look for.
- Hermann Finkeldei – A finance and transformation expert who helped scale Flink SE to a $1B unicorn and strong experience of restructuring a family business. His focus industries include, Business Process Outsourcing, IT Services, and testing/certification, inspection services.
- Jasper von Flotow – A strategic operator with deep investment experience. His focus industries include, Cleantech, Healthcare, and Education. He has a strong track record in M&A, business transformation, and development.
We are confident Hermann and Jasper will set the standard for the next generation of searchers in Germany.
Many search funds struggle post-acquisition. How will Tembo support searchers in managing and growing their companies?
Christian: Acquiring a company is just the beginning. Tembo provides comprehensive post-acquisition support to ensure searchers successfully transition into their CEO roles and scale their businesses. We offer strategic guidance, helping searchers set clear priorities, develop growth strategies, and navigate industry challenges. Our financial oversight ensures smart capital allocation, optimized cash flow management, and structured debt handling. Through our executive search network, we help searchers build strong management teams and recruit key talent. Additionally, we act as sparring partners, offering hands-on mentorship, operational best practices, and crisis management support. With Tembo, searchers don’t just acquire a company—they gain a long-term partner committed to their success.
