To Exit or Not to Exit: 2x MOIC in 2 Years
Sarkaw Aziz acquired a $5 million EBITDA vacation rental platform in Colorado, structured it with a 50% seller rollover and a 3x EBITDA seller note, and exited just two years later with 2x MOIC and a 41% IRR.
Sarkaw Aziz saw attractive fundamentals in vacation rental property management with recurring revenue, high margins, and diversified demand across ski and summer seasons. Their entry came through acquiring an approximately $5m EBITDA Colorado platform with scale and infrastructure. The deal gave them a strong foothold in a fragmented market that was beginning to attract institutional capital.
The transaction terms were highly unusual. The seller rolled 50% ownership and financed much of the rest with a rare 3x EBITDA seller note. The structure eliminated the need for outside debt and kept the seller deeply aligned. The seller's motivation was tax efficiency and the chance at a second, larger payday through the growth of the company. For Sarkaw and his investors, this created favorable entry economics and strong confidence that the seller believed in the robustness of the business.
Only 2 years later, after a couple of bolt-ons, they sold to a strategic buyer. The exit returned a little over 2x MOIC and 41% net IRR. While holding longer might have delivered even bigger returns, the risks included rising competition, macroeconomic exposure, and lost acquisitions to better capitalized groups. Exiting early provided certainty and landed an impressive track record.
The buyer was a large PE-backed strategic in their industry who outbid them on multiple add-ons. Sarkaw now remains involved through a 1-year earn-out. Beyond that, he is considering whether to continue as an operator or shift toward a true independent sponsor model.
Keep reading
Buy Small ($1m EBITDA at 4x), Keep Winning
Ryan Sullivan's fully-baked & winning concept at North Park Group: buy $1m EBITDA firms at 4x, add the real estate, finance half with SBA debt, and never sell. Voila, today they have 5 operating companies, 6 acquisitions, 25% annual returns, and an investor waitlist.
$100m Fund? No, Thanks!
Quinten Griffiths, based in Calgary, Canada, shares his journey from an empty-handed traditional searcher who walked away from 6 LOIs to a highly successful independent sponsor and co-founder of GoodCapital. Today, he leads Sportball as CEO, one of several portfolio companies that they own outright, with a 4th platform set to close imminently. Their success prompted a Family Office to offer them the opportunity to lead & run a dedicated $100m fund, but Quinten and his partner preferred the autonomy & flexibility of staying an independent sponsor.
8 Years, 8 Portcos Since Starting as a Searcher
Ian Reynolds, based in Houston, founded Thesis Capital Partner, recently ranked as a Top 20 independent sponsor. Thesis recruits Executives in Residence, who run their portcos, shares in the GP, and gets involved at the Thesis-level for shared learnings and ecosystem-building. Minds Capital invested in one of Thesis' deals in 2024. 8 years after completing his first deal as a self-funded searcher, Ian reflects on a journey that now counts 8 portfolio companies and a team of handpicked partners.
