CapitalPad for Investors
Invest deal by deal alongside independent sponsors acquiring established, profitable businesses.
Investments from $25,000 · Accredited investors only
For Accredited Investors
CapitalPad invests alongside independent sponsors in acquisitions of established, profitable businesses in the United States and Canada.
Independent sponsors are investment professionals or firms that identify a business to acquire and raise capital for that transaction. They work with company management to improve operations, grow revenue, or acquire complementary businesses.
CapitalPad’s investment committee reviews each opportunity before it is presented to investors. Investors evaluate the business and proposed terms, then decide whether to participate.
Illustrative acquisition
A profitable provider of industrial maintenance and repair services with repeat customers and a plan to grow through complementary acquisitions.
Investment materials: Investment memo and financial model, including target IRR and MOIC.
Full materials available under NDA.
For illustrative purposes only. Not a current offering.
Business Fundamentals
CapitalPad focuses on profitable companies with existing customers, operating cash flow, and a financial history to evaluate. The investment case starts with how the business earns money today and what could improve under new ownership.
CapitalPad looks for businesses supported by repeat purchases, essential services, or regulatory requirements. Examples include recurring business services, home repair and maintenance, and supplies customers rely on for daily operations.
CapitalPad believes many established lower middle market businesses offer a clearer playbook for creating value through professionalization and growth: stronger management, better financial reporting, refined pricing, more consistent sales processes, and opportunities for add-on acquisitions.
Investment criteria
CapitalPad targets lower middle market acquisitions with the following characteristics:
CapitalPad also selectively reviews search fund acquisitions after an LOI has been signed.
Representative industries
CapitalPad targets industries where demand is supported by essential work, repeat purchases, or regulatory requirements. Examples include:
This list is representative, not exhaustive.
The Investment Process
CapitalPad sources identified acquisitions of established businesses through relationships with independent sponsors in the United States and Canada. Each opportunity has a developed investment thesis.
CapitalPad’s three-person investment committee evaluates the business, sponsor, acquisition price, and financing. The review covers earnings quality, cash conversion, customer concentration, and how the investment could perform if the operating plan falls short.
CapitalPad reviews and negotiates terms with the sponsor for its investment vehicle, including minority investor protections, reporting requirements, sponsor compensation, and how proceeds are distributed.
CapitalPad pools investor commitments in a transaction-specific special purpose vehicle (SPV). Investors hold interests in the SPV, which holds equity in the acquired business.
CapitalPad monitors financial performance, reviews sponsor reporting, and remains in contact with the sponsor throughout ownership. CapitalPad also coordinates investor communications, distributions, and annual tax documents.
CapitalPad charges a one-time 1.5% administration fee when an investment is made. There is no annual management fee.
CapitalPad also earns 20% carry on profits, but only after investors have received their initial capital back on that deal.
Getting Started
Complete the investor application. CapitalPad reviews each application and confirms accredited investor status before providing access to investment opportunities.
CapitalPad shares opportunities periodically after investment committee approval. Full materials, available under NDA, cover the business, financials, sponsor background, terms, operating plan, and key risks. Direct questions to the CapitalPad team.
Individual investments generally start at $25,000. Once your allocation is confirmed, complete the subscription documents and fund your commitment.
After closing, you hold an interest in the investment vehicle. These illiquid investments generally target a holding period of 3 to 7 years, though timing varies. Distributions depend on business performance, reinvestment needs, and investment terms; proceeds may also come from a recapitalization or sale.
Each acquisition has a dedicated CapitalPad investment vehicle. Its governing documents set out investors’ ownership interests, rights, and how distributions are allocated.
CapitalPad provides quarterly updates covering financial performance, operating developments, and distribution status. Investors receive an annual K-1 for each investment.
CapitalPad is your point of contact throughout the investment and coordinates subscription documents, investor communications, distributions, and tax document delivery.
CapitalPad investors can participate across businesses, industries, and sponsors as opportunities become available. Each investment is a separate decision, with no obligation to invest in future transactions.
“CapitalPad has made investing in acquisition deals much easier. They find the deals, present them simply, and make the closing process painless.”
CapitalPad provides transaction materials so investors can assess the business and proposed terms before requesting an allocation.
CapitalPad’s team combines experience building and operating companies with institutional private equity and independent sponsor investing. CapitalPad evaluates how a business operates alongside its financial performance, acquisition terms, and the sponsor’s plan for ownership.
CapitalPad accepts accredited investors who complete its onboarding and verification process. Individual investors can participate with commitments generally starting at $25,000 per deal.
Completing onboarding provides access to review opportunities and does not create an obligation to invest.
Yes. CapitalPad works with funds, family offices, and Small Business Investment Companies (SBICs) that invest in independent sponsor transactions.
Direct institutional participation requires a minimum commitment of $750,000 per deal. Institutions can identify their investor type during onboarding.
Yes. CapitalPad supports investments through self-directed IRAs. Investors should confirm that their IRA custodian permits the investment and coordinate the subscription and funding process with the custodian.
The investing entity is designated when requesting an allocation.
Individual investments through CapitalPad generally start at $25,000 per deal. Direct institutional participation starts at $750,000 per deal.
CapitalPad is a private equity co-investment group focused on lower middle market acquisitions in the United States and Canada. Target businesses are established and historically profitable, typically with enterprise values of at least $5 million and annual EBITDA of at least $1 million.
CapitalPad primarily invests alongside independent sponsors as a minority equity partner. Independent sponsors identify businesses, structure acquisitions, and raise capital for specific transactions. After closing, the sponsor works with company management to execute the investment plan.
CapitalPad also considers select post-LOI search fund acquisitions, where a searcher has identified a business and signed a letter of intent. In these transactions, the searcher typically takes an operating leadership role after the acquisition.
Representative industries include residential and commercial services, healthcare and provider services, testing and compliance, specialty distribution, auto and fleet services, professional and business services, and light industrial manufacturing. The focus is on the so-called “boring businesses” with established earnings and durable demand, supported by an investment plan for operating improvements, organic growth, or complementary acquisitions.
CapitalPad believes lower middle market private equity offers an attractive combination of lower entry valuations and a more clearly defined playbook for creating value. Smaller businesses often trade at lower earnings multiples than larger companies, while retaining meaningful opportunities to improve operations and grow.
Many established businesses have succeeded without experienced finance leadership, disciplined pricing, consistent reporting, or a repeatable sales process. Professionalization creates an opportunity to build on those existing businesses. Investors can identify the gaps before acquisition and evaluate a specific plan to improve earnings, enter new markets, or acquire complementary companies.
Historical performance also supports this focus. PitchBook’s 2026 analysis of SPI by StepStone data found that realized and partially realized U.S. lower middle market deals since 2009 generated higher pooled gross returns than every larger size band in the study.
CapitalPad prefers an investment model in which the opportunity comes before the acquisition capital. Traditional private equity funds raise commitments against a strategy, then deploy that capital within a defined investment period. Independent sponsors reverse that order, developing an investment thesis, identifying a business that fits, and then raising capital to complete that acquisition.
CapitalPad believes this sequence supports greater selectivity and reduces pressure to deploy an existing pool of capital. Each transaction must attract investment based on the actual business, acquisition price, financing, and operating plan. CapitalPad also looks for sponsors with relevant experience and a clear commitment to working closely with management throughout ownership.
Research reinforces this preference. A 2026 study from UNC’s Institute for Private Capital found that investor-reported independent sponsor investments generated higher average gross returns than comparable U.S. buyout investment benchmarks. Those findings support CapitalPad’s interest in the model, alongside its assessment of each sponsor and transaction.
CapitalPad lets accredited investors evaluate individual acquisitions before committing capital. Investors review the business, sponsor, acquisition price, financing, and proposed terms, then decide whether to participate.
A traditional blind-pool private equity fund generally raises commitments for a portfolio of investments selected by the fund manager over time. Individual investors in CapitalPad deals participate through a dedicated vehicle for each acquisition. Participating in one deal creates no obligation to invest in future deals, and CapitalPad charges no annual management fee.
CapitalPad makes investment opportunities available periodically after approval by its three-person investment committee. Availability depends on the quality of the business, sponsor, and transaction terms.
There is no fixed schedule, and there may be periods when no new opportunities are available.
Accredited investors can invest in independent sponsor deals through CapitalPad by reviewing individual acquisitions and participating through a transaction-specific special purpose vehicle (SPV). The process follows five steps:
CapitalPad investments generally target a holding period of 3 to 7 years, depending on the business and sponsor’s investment plan. The target is disclosed in the deal materials before investors commit.
Actual holding periods may be shorter or longer. The target is an estimate, not a fixed exit or repayment date.
Returns from CapitalPad investments may come from cash distributions during ownership, a recapitalization, or the eventual sale of the business.
Some investments may make distributions from operating cash flow. Others retain cash to fund growth, acquisitions, or debt repayment. Each opportunity’s materials describe the expected distribution approach and exit strategy. The timing and amount of distributions depend on business performance, financing obligations, reinvestment needs, and the investment terms.
CapitalPad charges a one-time 1.5% administration fee when an investment is made. There is no annual management fee.
CapitalPad also earns 20% carry on profits, but only after investors have received their initial capital back on that deal. Deal-specific fees and economics are disclosed before investors subscribe.
Investors participating through CapitalPad’s special purpose vehicles receive an annual Schedule K-1 for each investment. The K-1 reports the investor’s share of the vehicle’s income, deductions, and other tax items.
Tax documents are delivered through CapitalPad’s SPV administrator.
CapitalPad investments are illiquid and intended for long-term ownership. There is no established secondary market, and investors should expect to hold their interests for the duration of the investment.
Any transfer is subject to the investment’s governing documents. Cash distributions may occur during ownership, but they do not provide a right to withdraw capital or sell an interest.
Private equity investments through CapitalPad are speculative, illiquid, and involve the risk of loss, including possible loss of the entire investment.
Portfolio companies may underperform, distributions may be reduced or delayed, and investors may be unable to sell their interests before an exit. Investors should review all deal materials, assess the specific risks of each opportunity, and conduct their own independent diligence before investing.
The information on this page is for informational purposes and does not constitute an offer to sell or a solicitation to buy securities. Any investment is made only through the applicable offering and subscription documents, which govern the investment’s terms.
CapitalPad does not provide individualized investment advice. Investment materials may include information supplied by sponsors, companies, and other third parties. CapitalPad does not guarantee the accuracy or completeness of that information.
Private investments involve substantial risk, including the possible loss of the entire investment. Past performance is not a guarantee of future results. Projections, target returns, and estimated distributions are hypothetical and may differ materially from actual results.
Investors are responsible for conducting their own independent due diligence. Investments are not FDIC insured, may lose value, and carry no bank guarantee.
There may be no secondary market for investment interests. Transfer restrictions may apply, and investors may not have voting rights sufficient to influence the management or operations of the underlying business. Investor rights are defined by the applicable governing documents.
