27-Year-Old CEO: Grad Buys Firm

A growing number of young business graduates in the US are taking an unconventional route to the top: borrowing money to buy established companies and installing themselves as CEOs. This practice, known as entrepreneurship by acquisition or 'search-fund investing', has seen a record 94 search funds launched in 2023.

One such example is Ania Aliev, a 27-year-old MBA graduate from the Tuck School of Business at Dartmouth College, who bought a Massachusetts-based medical equipment business called Life Support Systems and became its CEO. Notably, Aliev gave birth to a boy just three months before taking the reins of the company.

Search funds in the US have attracted significant investment, with $682m (£505m) invested across 2022 and 2023. There are also investment companies that specialise in backing young entrepreneurs and their search funds, such as Search Fund Partners, Aspect Investors, and Anacapa Partners.

Aliev's background is in finance, having worked in the industry before pursuing her MBA. Her experience is not unique, as many young entrepreneurs are now opting to borrow hundreds of thousands of dollars to buy established businesses and become their bosses, rather than joining a corporate giant or forming their own start-up.

## Why it matters This trend is seen as a way for impatient entrepreneurs to become bosses of established firms without having to work their way up the corporate ladder. However, it also raises questions about the potential implications for employees and the companies themselves, as a 20-something with little experience takes the helm. Aliev was aware of the potential challenges, particularly in terms of first impressions, and took a cautious approach, choosing to observe and learn rather than impose her will on the company.

As the number of search funds continues to grow, it will be interesting to see how this trend develops and what the long-term consequences will be for the companies and entrepreneurs involved.