The SMB
Investment Platform

Connecting accredited investors with acquisition entrepreneurs to power the next generation of SMB ownership.

Connecting accredited investors with acquisition entrepreneurs to power the next generation of SMB ownership.

Invest in SMB Acquisitions

CapitalPad delivers accredited investors a highly curated pipeline of sponsor-led deals from proven acquisition entrepreneurs.

Raise Capital

CapitalPad invests in searcher and independent sponsor deals. Connect with value-add investors, fund your acquisition, and build an enduring business.

CapitalPad for Investors

Invest in Profitable, Enduring Businesses

Forget venture capital.

CapitalPad only invests in historically profitable, cash-flowing companies led by motivated operators.

Build a diversified, passive portfolio of legacy businesses with our curated pipeline of lower-middle market search fund and independent sponsor deals.

Disciplined Deal Selection

CapitalPad reviews hundreds of opportunities and only invests in the rare few that meet our strict profitability and durability standards.

Boring Is Beautiful

Aggregate search fund returns have historically outperformed both venture capital and private equity¹.

Simplified Investing

CapitalPad makes it possible to build one of the only truly passive portfolios of small businesses.

Focused Capital

CapitalPad only invests in searcher and independent sponsor deals, giving you a capital partner aligned with your model who can make decisions fast.

Streamlined Closing

One partner, one wire. Our structure pools capital into a single entity—simplifying your close.

Aligned Partnership

We’re invested in your success. Beyond the wire, our team brings SMB and private equity experience to help you build an enduring business.

CapitalPad for Searchers

Fund Your Acquisition

CapitalPad invests equity in searcher and independent sponsor deals, bringing alongside a trusted network of funds, family offices, and accredited investors.

Fill your equity gap and close with confidence.

“As a long-time SMB investor, I’ve witnessed firsthand the incredible potential of the search fund model. However, I also saw how many talented searchers struggled to access the capital they needed, while countless investors were eager to participate but lacked access.”

- Travis
Investor & Founder, CapitalPad
“CapitalPad makes the deal sourcing and logistics of SMB investing stupid easy – I’ve already joined my first deal and am excited for more!”
Nigel Moore
Author, Entrepreneur, Investor

“CapitalPad’s investment was invaluable for helping close our SMB deal. Highly recommended for self-funded searchers.”

Brian Seeling
Searcher

A Platform Built From Experience

Founded by a team with deep expertise in private equity and small business operations, CapitalPad combines institutional rigor with a passion for building enduring companies.

For Investors

Gain access to a carefully curated selection of search fund and independent sponsor opportunities. Participate in this overlooked asset class with confidence and clarity.

For Operators

Close with confidence. CapitalPad invests equity and brings a trusted network of investors, simplifying your raise and helping you secure the right partners.

Track Record

Our team’s disciplined and modern approach, combined with deep experience, has resulted in dozens of successfully closed deals.

FAQ

CapitalPad’s Deal Focus

CapitalPad backs acquisition entrepreneurs in lower middle market deals, where valuations remain attractive and competition from traditional private equity is limited.

These acquisitions are led by acquisition entrepreneurs, who are generally classified as either a “self-funded searcher” or an “independent sponsor”. These operators acquire established, historically profitable SMBs — not startups or venture-style bets.

Deals typically involve the acquisition of well-established companies with multi-year track records of profitability.

Common examples of target deals on CapitalPad include:

  • Home Services – HVAC, roofing, contracting
  • Consumer Services – Garment care, towing
  • Healthcare Services – Home health, physical therapy clinics
  • Light Manufacturing – Light, specialized
  • Digital Services – IT firms, agencies
  • Professional Services – accounting firms, consultancies, B2B providers

CapitalPad gives approved, accredited investors the option to pool together capital to fund the acquisition, essentially partnering with the acquirer. In return, investors receive equity ownership and share in both ongoing cash distributions from operations and potential capital gains upon exit.

Who can invest on CapitalPad?

CapitalPad is only available to approved accredited investors, pending approval through our onboarding process.

Can institutions invest through CapitalPad?

Yes, CapitalPad is available for funds and family offices dedicated to the independent sponsor space (some restrictions apply). You can choose to sign up as an institution during onboarding.

What is the minimum investment size?

$25,000 per deal.

How do investors participate in deals?

Once approved, accredited investors gain access to the CapitalPad dashboard.

Deals are posted only as opportunities arise, each with a detailed due diligence data room that includes:

  • Summary teaser
  • Business details
  • Sponsor profiles
  • Historical financials
  • Tax returns
  • Financial models
  • Investor terms
  • Value creation plan
  • Searcher/Sponsor interview

Investors review the materials and choose to co-invest on a per-deal basis.

How liquid are these investments?

Investments on CapitalPad are long-term and illiquid. While investors may receive cash distributions during ownership, most returns are realized when the company is sold. Illiquidity is what allows for disciplined growth and attractive returns.

How does CapitalPad make money?

CapitalPad is fully aligned with investors. We don’t charge management fees. We only earn a 20% share of profits after investors have received their full initial investment back. If a deal isn’t profitable, investors pay nothing.

What are the requirements for self-funded searchers on CapitalPad?

Target company should be established, historically profitable, and cash-flow positive.

  • Minimum of $750k EBITDA
  • Raising at least $300k
  • Strong preference for businesses with stable recurring revenue, essential services, or durable customer demand
  • Based in North America
  • Must have a company under LOI to raise (CapitalPad does not provide seed funding for search vehicles)
  • Strong operator background
  • Low customer concentration
  • Low cyclicality

What are the requirements for Independent Sponsors?

  • Typical target size of $2m EBITDA
  • Must have a company under LOI (or deep in diligence).
  • Clear transaction path with a realistic timeline to close.
  • Demonstrated track record of executing transactions (prior M&A, PE, or operator experience).
  • Sponsor economics (carry/promote, fee structure) that are market-standard and aligned with investors.

Does CapitalPad charge operators a fee?

No — Operators, Searchers, and Sponsors do not pay a fee. CapitalPad is not a capital raising service.

What types of businesses does CapitalPad invest in?

CapitalPad is industry-agnostic but focuses on businesses with durable demand, low risk of technological disruption, and clear, proven profitability. No speculative startups or turnarounds.

CapitalPad has become one of the top investors in the self-funded search fund and independent sponsor space by avoiding shortcuts, sticking to what we know, and consistently backing proven, enduring businesses.

How quickly can CapitalPad commit capital?

CapitalPad can provide a signal within days and commit capital in as little as two weeks. The more time you allow, the larger the potential commitment.

What level of involvement does CapitalPad have post-close?

It’s driven by the operator. CapitalPad can be a hands-on partner in certain deals or take a passive role in others. The level of involvement is entirely up to you.

CapitalPad does not provide personalized investment advice or recommendations to any individual investor. All information provided through this website, including details related to potential investment opportunities, is for informational purposes only and is not provided by CapitalPad.

Investors acknowledge and accept the inherent risks of investing in private securities, including the risk of total loss of invested capital. Past performance of any entity, individual, or investment strategy is not indicative of, and does not guarantee, future results. Any forward-looking statements or projections are hypothetical, may not materialize, and should not be relied upon as a guarantee of future performance.

Investors are solely responsible for conducting their own independent due diligence prior to making any investment decision. Investments made through CapitalPad are speculative, illiquid, not FDIC insured, not bank guaranteed, and may lose value. There may be no secondary market for these securities.

Investments may also involve limited or no voting rights, and investors should assume that they will not have influence over the management or operations of the underlying entity.

By participating, investors acknowledge that all investments involve significant risk, and that neither CapitalPad nor its affiliates make any representation, warranty, or guarantee as to the performance of any investment.

Where Searchers, Sponsors & Capital Converge