Vacation Rental Platform Exit: 2x MOIC, 41% IRR in 2 Years
Discover how Sarkaw Aziz acquired a vacation rental platform with creative financing and achieved a 41% IRR in just two years through strategic growth and timely exit.
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.
More recent episodes
Grew EV 10x in 5 Years
Ben Rudman knew he wanted to work in food before he knew what investment banking was. His first independent sponsor deal, Western Smokehouse Partners, started with ~60 employees in 2018. By the time it sold 4.5 years later, it had almost 700 employees across 4 facilities and enterprise value had grown ~10x.
On the Ground at McGuireWoods 2026
Recorded from McGuireWoods in Dallas after Day 1, Niklas, Max & Will compare notes from the conference floor. Last year had ~2,000 attendees and this year felt bigger. The Minds team had ~30-40 meetings, found 3-5 qualified deal leads & ~6 prospective podcast guests. The day before, Minds hosted its annual Investor Day with 70+ RSVPs from 142 LPs and 8 portfolio sponsors attending.
32x MOIC After 100 Investors Said No
Since Kevin Ramsier's last appearance on this podcast, his firm, Sier Capital, has closed a new infrastructure platform (where Minds Capital is an investor) and exited another business that generated a 32x MOIC over a 7-year hold. The same business started with 95% customer concentration and nearly 100 investors said no.