To make it easier for you to read this article, we suggest downloading it in PDF Format.
Caméléon has been one of the most active investors in Search Funds in France since 2020. Could you introduce your family office to our readers?
Caméléon is the family office founded by my father, François Simon, after a successful career in finance. I joined him in 2019 to focus on private markets (start-ups, SMEs, PE and VC funds) and discovered the Search Fund model at a time when I was looking to increase the quality and quantity of my SME minority investments deal flow. Since then, we have backed 15 Searchers – mainly in France – invested in 5 acquisitions and recently had a successful exit.
You have invested in many French searchers and transactions. What are your main investment criteria, and what does your current portfolio look like?
We always start with the Searcher and put a strong emphasis on the managerial experience of the candidate. We want people who have seen different organizations and have proper operational experience managing teams with various profiles (age, educational background) because that’s the context they will have to face once the acquisition is done.
Regarding deals, we focus only on growing markets with tailwinds and avoid businesses overly reliant on 1 supplier for example.
Last year, you launched Cassius Search, the first French entrepreneurial investment platform focused on SME acquisitions led by experienced executives. What motivated you to embark on this journey, and how does it differ from the traditional Search Fund model?
I am surrounded by entrepreneurs and CEOs aged 35 to 45 who, after a successful adventure (start-up, C-level jobs), are looking for their next challenge. They may not have a unicorn idea, and certainly do not want to return to consulting, finance, or corporate jobs. ETA represents a great opportunity.
With Cassius Search, I want to bring these talents to the Search Fund world by helping them raise their fund with mostly local investors with various profiles (Family Offices, entrepreneurs, and Funds of Search Funds) to benefit from their network and expertise post-acquisition. I also pool the search tools as well as intermediated deal flow and finally I provide support during negotiations and Due Diligences.
Also, it is important for me that these profiles come with an industry focus to have a more selected approach and being able to speak peer-to-peer to potential sellers. On the incentive side, I fully comply with the original Search Fund model.
You recently backed Joto Transmission, the first vehicle under this new model. Could you tell us more about this initiative?
Joto is the first Search Fund co-founded by Cassius and we raised it this summer with Pierre-Philippe de Bouville who is an engineer and former McKinsey consultant. He also founded a B2B software company, which he later sold to Saint-Gobain. He remained at the head of the company for a few years and then was looking for another challenge. We met 1 year ago and decided to partner to be more efficient on the 3 elements that make a Search Fund successful: gather great investors, find a fantastic business and acquire it at a fair price. With Pierre-Philippe we focus only on B2B software because of his experience and ambition in the field.
As an investor, what qualities do you value most in a searcher beyond their CV and technical skills? What advice would you give to young French entrepreneurs considering launching a Search Fund today?
I like searchers who have strong ambition and drive, and who do not see the Search Fund model as a guaranteed recipe for success. I dislike hearing about the supposed “magic” of recurring revenues — I believe there is no such thing as guaranteed recurring revenues in business. What truly matters are great products that fit clients’ needs, strong barriers to entry, high switching costs, and smart price positioning.
My advice would be to assess whether the Search Fund path is really the right fit, as it requires a wide range of skills — from searching and negotiating to developing a sizable company. The Search Fund model is only a niche within the broader SME acquisition landscape, so they should be aware of the difficulties it implies. If they have all these qualities, then let’s do it.
Looking ahead, what is your long-term strategy for Cassius Search, and where do you see the platform in the next five years?
The whole point of the platform is to help great entrepreneurs acquire and run great businesses. The Search Fund model guarantees a strong alignment of interests between searchers and investors, and I want to maintain that while continuously launching two Search Funds per year with different sector focuses.
I am already preparing the fundraising of the second fund with a great entrepreneur in the B2B services space, and in the future I will look for profiles with expertise in health, energy, or defense. My focus now is on supporting these entrepreneurs throughout their journey and creating the best environment for successful takeovers.
The French Search Fund market has faced challenges over the past 18 months, with several searchers struggling to close deals and some even abandoning their search. What is your view on the current market, and with more than a dozen new searchers entering in 2025, are you optimistic about the future?
Yes, it is true. I believe we have seen about three waves of searchers since 2018–2019. The first wave included very ambitious and successful pioneers. Then came an arguably more opportunistic group of searchers, who faced greater challenges in acquiring strong businesses.
In my opinion, the latest wave is better prepared, with complementary duos or more experienced profiles.
Do you see increasing interest from institutional investors in the French Search Fund space, or is it still largely driven by family offices and private investors?
We now see the emergence of French Funds of Search Funds, which is obviously great for the ecosystem. With Cassius, I have attracted new investors such as family offices and entrepreneurs who are interested in the model and the diversification it can bring to their portfolios. They are also pleased to see the asset class becoming more structured and better adapted to French fiscal laws.
More partial and full exits will be key to proving that the model works in France, as it does in other countries, and to attracting institutional investors’ attention.
