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In 2018, Matt Kopp sought to raise the first traditional SF in Australia. Ultimately, he opted for a self-funded approach, acquiring Southern Biological, a leading Australian science education company. Over time, he completed six additional add-on acquisitions before successfully exiting the business to a major PE firm. Meanwhile, Joel Fleischmann acquired a medical technology distribution company at the age of 26, leveraging capital from limited partners. He applied his operational and financial expertise to transform the business, achieving a remarkable 20x return upon its sale to Navis Capital.
These two accomplished entrepreneurs, who have firsthand experience in acquiring, operating, and scaling businesses, and navigating challenges such as cash-flow pressures and day-to-day operations, have joined forces to establish Enduring Investment Partners.
Enduring Investment Partners has already secured the first AUS$15M of its AUS$25M target, aiming to support a new generation of searchers in Australia. Their goal is to partner with 4–5 driven leaders over the next two years to grow and sustain SMEs while ensuring their legacy endures for future generations.
As Matt explained, “The Australian market is quite complex. While it has become easier to raise a traditional SF, attracting international investors remains challenging. Most stick rigidly to their models and fail to recognize the potential for build-ups in this fragmented market.” This realization prompted Enduring Investment Partners to develop an EIR program. The program deviates slightly from the traditional model by providing searchers with comprehensive support, including a higher salary during the search phase and full equity financing for acquisitions.
Enduring Investment Partners firmly believes that the success of any business lies in its people. Their people-first approach emphasizes matching talented leaders with businesses that align with their skills and aspirations. Targeting mid-career professionals, the program offers mentorship and support through all phases of the search and acquisition process. The selected CEOs can earn up to 25% equity in their acquired companies, broken down as follows: 5% at acquisition, 5% during operations, and 15% at exit, tied to performance. While these percentages align with traditional SF structures, the emphasis on performance-driven equity ensures strong incentives to deliver outstanding results.
Matt shared that the initial fund aims to complete 4-5 acquisitions, targeting SMEs with EV of AUS$5–15M. Investors in the fund are open to supporting add-on acquisitions, recognizing the value of consolidating small companies and driving growth through improved management.
Currently, Enduring Investment Partners is evaluating a dozen potential candidates and anticipates onboarding its first entrepreneur by early 2025. Their long-term vision is to manage a portfolio of 15 SMEs within five years. To achieve this, they plan to raise a new investment vehicle in the next 2–3 years.
With a focus on sustainable growth and a commitment to holding businesses for the long term, Enduring Investment Partners prioritizes creating enduring value over short-term gains.
