Mesto Capital
For investors

A staged investment in a proven model

We opened our search round in June 2026 and expect to close it by September 2026. This page explains how the investment works and what we are looking for. The full documents are available to qualified investors on request.

HOW THE INVESTMENT WORKS

Two rounds - one business

A search fund raises capital in two stages. You commit a small amount now to fund the search, and you earn the right, but never the obligation, to fund the acquisition later, on preferred terms.

Round one: the search.Investors fund the search company so the principals can search full time for up to 24 months. In return, each investor receives a priority right to participate in the acquisition when we find it. If we never acquire, this is the capital at risk.

Round two: the acquisition.When we find the right company, investors can fund its purchase alongside senior debt and seller financing. Your search round capital converts into the operating company at a 50% premium, so every €1.00 invested in the search becomes €1.50 of securities in the business you helped acquire.

Then we operate, and exit.The principals step into executive roles and run the company for roughly five to seven years, growing it patiently before a sale to a strategic or financial buyer. Returns are driven by that growth, not by financial engineering.

INVESTMENT TERMS

The structure of a deal

Search round: €350,000, offered as 35 units of €10,000.

Use of proceeds: funds a dedicated, full time search for up to 24 months including due diligence of potential acquisition target(s).

Priority participation:
the right, not the obligation, to fund the acquisition, up to 100 percent of the equity, so early investors need never be diluted by outside capital.

Step up: search capital converts into the acquired company at a 50 percent premium.

Preferred return: a 7 percent cumulative preferred return on acquisition stage equity, paid in full before the principals.

Target company: a single, profitable, founder led business with an enterprise value between €2.5M and €50M.

Hold: roughly five to seven years, with returns realised at exit.

Full structure, economics and risks are set out in the Private Placement Memorandum, available on request.

The documents

Request the materials

The Pitch Deck, Private Placement Memorandum, Searchers' resumes and references, and detailed Market Analysis are available to qualified investors upon request.

Pitch DeckOverview of the opportunity and terms
Private Placement MemorandumFull structure, terms and risks, tax and legal analysis, market analysis, searchers' resumes and references, etc.
Market AnalysisEx-Yu search viability & depth of opportunity

Shared with qualified investors under confidentiality.