Passive income: NO

Starting a search fund as a side hustle has the potential to eventually earn passive income, but it is not a guaranteed outcome for most individuals. The process of acquiring and managing a portfolio company through a search fund requires significant time, effort, and expertise. While some successful search fund entrepreneurs have been able to generate passive income by effectively delegating operational tasks and overseeing strategic decisions, this level of passive income is achieved by a minority rather than the majority. Setting up systems for automation and outsourcing key functions can help streamline operations, but active involvement is often necessary, especially in the initial stages. It's important to note that the journey to passive income from a search fund can be challenging and time-consuming, with results varying based on individual skills, experience, and market conditions.