The Vestige Capital case follows a search fund team comprised of two 2009 Stanford GSB alumni as they decide to raise a search fund in Mexico, procure search capital from U.S. and Mexican investors, and source deals over the ensuing two years. The case chronicles the difficulties the team faced during their search, including the departure of one partner from the firm and several near misses with acquisition. At the end of the case, the reader is left with a difficult decision: with very little search capital left, should the team recommence acquisition conversations with one previous target that they had previously walked away from, restructure their fund to acquire minority stakes in a handful of businesses, or shut down the fund in lieu of an attractive job opportunity with steady income.

As he nears graduation from the Stanford Graduate School of Business, Pat Smith is considering his career plans. He wants to be an entrepreneur, but he has no start-up idea of his own. He is interested in entrepreneurship through acquisition and, based on conversations with various entrepreneurs, is trying to decide which type of search fund is right for him: a traditional, or funded, search, a self-funded search, or a sponsored search. In addition, he has to decide whether to pursue an entrepreneurial endeavor immediately after graduation or later in his career.