I Raised $11.7M To Back 13 Self-Funded Searchers | Grant Hensel Interview

Grant Hensel has started 10 companies (7 failed, 2 sold, 1 scaled), bought a business his wife now operates, and then got obsessed with backing self-funded searchers. He’s the founder of Entrepreneurial Capital, raising ~$11M to invest in “cockroach” SMBs at 3–5x earnings alongside gritty owner-operators.If you’re buying or backing boring, profitable businesses, this is a playbook episode.CapitalPad: the SMB investment platform for accredited investors & searchers. Join now: https://capitalpad.com/ - A deal-by-deal private equity investing platform Spacebar Studios writes your company newsletter—strategy, writing, design, distribution. Try it free for 2 weeks. Go to: https://www.spacebarstudios.co/inquireYou'll learn:00:00 Grant’s path: 10 starts, 2 exits, 1 scaled; now backing self-funded searchers00:32 Grant’s background & living the “buy vs. build” debate02:26 Buying a business for his wife to run (4 LOIs, funny diligence misses)05:24 First 90 days: installing EOS, weekly scorecard, real traction06:52 Portfolio before the fund (one built, one bought)07:08 Sponsor — Capitalbat (SMB investor ↔︎ searcher platform)07:59 Holdco vs. minority investing; why operator quality dominates09:32 Why self-funded search is a built-in grit test10:14 From personal checks to raising a fund (organic evolution)12:23 The four screens: low concentration, low capex, low cyclicality, history of profits13:53 Cyclicality lesson: cheap isn’t worth macro sensitivity15:52 Fund timeline: Oct ’24 idea → Feb ’25 start → Jul ’25 close16:39 Fundraising tactics: “ask for advice,” webinars, soft-circle snowball18:41 Sponsor — SpaceBar Studios (done-for-you newsletters)20:27 Looking at deals while raising; confidence once ~$5M soft-circled21:16 How Grant picks winners: on-site diligence, non-spreadsheet reality22:51 Sourcing searchers: Searcher.com, webinars, “This Week in ETA” newsletter26:15 Day-to-day now: LOI diligence, marketing, advisor feedback (pre-first deal)27:17 Deployment pace: 13–18 deals over 2–3 years (~1 every other month)27:38 Deal flow volume: ~1 LOI/day; be ultra-selective28:03 The five pre-LOI seller questions (and why they matter)32:26 What to buy (and avoid): home/B2B services, light mfg (with chops); no e-comm/retail/restaurants33:58 The real investor value-add: resilience through the ugly middle35:18 Roll-up skepticism; single-asset cash flow is better than multiple-expansion bets37:53 First-90-days playbook: live in the trenches; avoid “academic” fixes39:45 Inventory cautionary tale: don’t break the value prop you can’t see on a P&L44:19 Game-changer hire: Chief of Staff as force multiplier46:10 Failure as teacher; base rates favor buying over building48:23 Where to find Grant (Twitter & LinkedIn)49:05 Favorites: Switch, Good to Great, Traction; best advice—circle of competence50:51 Wrap-up & closeSupport our Sponsors:CapitalPad: https://capitalpad.com/SpaceBar Studios: https://www.spacebarstudios.co/inquireSubscribe on Spotify:https://open.spotify.com/show/6lr5bE3SNZF2uEE7Nb0DHh?si=cP_nAarhRmep1lvnR6uk5gSubscribe on Apple Podcasts:https://podcasts.apple.com/us/podcast/holdco-builders/id1695713724Follow Mikk/PrivatEquityGuy on Twitter: ⁠⁠https://x.com/PrivatEquityGuyThis podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.