Frequently Asked Questions

  • It invests equity stakes alongside mid-career professionals acquiring existing, cash-flowing US small businesses.

  • Yes, at this time our LPs must be accredited investors.

  • Access to the the small business acquisition market is limited and can take significant resources. Our General Partner, Ben Roderick, has spent years networking in the space and is familiar with the risks and norms.

    ESBF also offers smaller minimum investments, along with the option of investing self-directed IRA funds, than other funds in the market.

  • The operator who is acquiring the business runs it day-to-day. They will have invested significant time and equity in the business and so have real skin in the game.

  • ESBF will distribute cash as liquidity events occur.

  • ESBF is building a portfolio of investments to mitigate the risk of any one business doing poorly—or even going bankrupt.

    The advantage of pooling capital and only investing 5-15% in any one investment is that the portfolio can do well even if one or two businesses do not.

  • We will charge a 2% management fee as well as a carry: 15% if IRR is below 20%, 25% carry if IRR is above 20%.