CapitalPad invests $500K to $2M in search fund transactions at the post-LOI acquisition stage. Beyond capital, we bring guidance from a team that has closed dozens of deals. No fees for searchers, and our success depends on yours.
CapitalPad for Investors
CapitalPad is for accredited investors looking for passive exposure to search fund acquisitions of SMBs and lower middle market companies.
We partner with search fund entrepreneurs at the acquisition stage, backing operators who have identified and negotiated deals with established, profitable companies.
Build a portfolio of enduring, owner-operated businesses, one investment at a time.
We evaluate hundreds of search fund investment opportunities each year and back only those that meet our strict operational and financial criteria.
Individual investors are consolidated into a single entity. One line on your cap table, one wire at closing, and no juggling dozens of investor relationships.
CapitalPad for Searchers
CapitalPad invests $500k to $2M in acquisition capital for search fund entrepreneurs.
CapitalPad is one of the most active investors in the United States, investing directly, and bring a network of funds, family offices, and accredited investors dedicated to backing search fund acquisitions in the SMB and lower middle market.
Our team has closed dozens of deals. We know what it takes to get yours done.
Raise smarter. Close faster.
“CapitalPad makes the deal sourcing and logistics of search fund investing stupid easy – I’ve already joined my first deal and am excited for more!”
“CapitalPad makes the deal sourcing and logistics of search fund investing stupid easy – I’ve already joined my first deal and am excited for more!”
“CapitalPad’s investment was invaluable for helping close our SMB deal. Highly recommended for searchers.”
“CapitalPad’s investment was invaluable for helping close our SMB deal. Highly recommended for searchers.”
Access search fund deal opportunities led by driven entrepreneurs acquiring profitable SMBs. Review each deal individually and invest with full transparency into the business, the operator, and the terms.
Get acquisition capital from a team that understands traditional search funds. CapitalPad invests at the post-LOI transaction stage, consolidates your investor base, and helps you close without unnecessary complexity.
We’ve backed dozens of closed transactions in industries ranging from business services to healthcare to manufacturing. That depth of experience informs every deal we evaluate and every searcher we partner with.
CapitalPad started with a simple goal: make it easier to invest in high-quality small business acquisitions. As investors ourselves, we found the process frustrating. Opportunities were hard to find, diligence varied wildly, and there was no efficient way to build a portfolio of owner-operated companies.
We decided to fix that.
In doing so, we discovered that search fund entrepreneurs faced their own challenges. Raising acquisition capital was time-consuming, investor management was messy, and the process often distracted from what mattered most: closing the deal and running the business.
CapitalPad now serves both sides of that equation. Investors get a curated pipeline of vetted deals. Searchers get a streamlined raise and a clean cap table. The platform works because it creates value for everyone involved.
A search fund is a vehicle through which an entrepreneur raises capital to search for, acquire, and operate a single company. CapitalPad invests at the acquisition stage, backing search fund entrepreneurs who have identified and negotiated a deal with an established, profitable business.
We typically look for companies with at least $750k to $5M in EBITDA , which is the core range for search fund acquisitions. You’ll need an executed LOI, a clear path to close, and demonstrated capability to operate the business.
No. CapitalPad does not provide capital for the search phase. We invest exclusively at the acquisition stage, once you have a company under LOI and are raising capital to close the transaction.
No. There is no fee for search fund entrepreneurs to raise capital through CapitalPad. Our economics come from carried interest on the investor side, which means we only make money when the deal performs. Your success is our success.
Speed depends on timing and complexity, but CapitalPad is generally fast, and can typically provide initial feedback within a few days. Formal commitments can happen in two when needed.
That said, giving us more runway usually means a larger check size. If your timeline allows, 30+ days is ideal.
We invest across sectors but have a strong preference for stable, cash-flowing businesses that aren’t dependent on trends or technology cycles. Common examples include business services, healthcare, home services, professional services, and light manufacturing.
We stay away from early-stage ventures, turnaround situations, and anything with high disruption risk. Our focus is US-based companies.
It depends on what you need. Some searchers want an active partner who can help with strategy, hiring, or operations. Others prefer a more passive investor who stays out of the way. We’re comfortable with either approach and will follow your lead.
What we bring regardless is a team that has been through dozens of acquisitions and knows what challenges lie ahead.
CapitalPad is open exclusively to approved accredited investors. All investors must complete our onboarding and verification process before accessing deals.
$25,000 per deal for individual accredited investors.
Once approved, you’ll access the CapitalPad dashboard. Each posted deal includes a full diligence package: deal memo, financials, tax returns, investor model, sources and uses, value creation plan, and a recorded interview with the searcher. You review the materials and choose whether to co-invest.
If you decide to proceed, you can indicate your investment size directly in the dashboard. When the deal approaches certainty of closing, we call capital and issue subscription documents for you to sign.
No. These are long-term, illiquid investments. You may receive distributions during the hold period, but most returns are realized when the company is sold.
Illiquidity is a feature. It allows operators to focus on building value rather than chasing short-term exits.
CapitalPad is one of the most active search fund investors in the United States. We charge investors a one-time (not annual) 1.5% management fee at the time of investment to cover operational costs. There is no annual fee.
Beyond that, we receive 20% of profits, but only after investors have received their full initial capital back. Our incentives are structured to align directly with yours.
A search fund is an investment vehicle where an entrepreneur raises capital from investors to search for, acquire, and operate a single private company. The model originated at Stanford and Harvard business schools and has grown into one of the most attractive paths to business ownership.
Traditional search fund investors provide capital in two stages: first to fund the search itself, then to fund the acquisition once a target company is identified. CapitalPad invests at the acquisition stage, backing search fund entrepreneurs who have a company under LOI and are raising capital to close.
Search Funds vs Self-Funded Search
Search funds differ from self-funded search, where the entrepreneur finances their own search process personally before raising acquisition capital. Traditional search fund entrepreneurs receive investor backing from day one, covering salary and search expenses during the 18-24 month search period.
Additionally, with the self-funded search model, searchers generally utilize SBA loans as a source of debt financing, where traditional search funds generally use more traditional lending sources only available to larger transaction sizes
Search Funds vs Independent Sponsors
Search funds also differ from independent sponsors, who are typically former private equity professionals pursuing larger deals, often $5M+ EBITDA, on a deal-by-deal basis without a formal search period. Search fund entrepreneurs generally target smaller companies in the $1M to $4M EBITDA range and commit to acquiring and operating a single business. CapitalPad is an active investor in both search fund and independent sponsor transactions.
CapitalPad does not provide personalized investment advice or recommendations. All information made available through this website, including materials related to potential investment opportunities, is for informational purposes only and is not authored or guaranteed by CapitalPad.
Investors acknowledge and accept the inherent risks of investing in private securities, including the risk of a 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 in nature, 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. 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.