A co-investment group investing deal by deal in acquisitions of established, profitable lower middle market businesses.
Deal-by-deal co-investments in acquisitions of established, profitable businesses.
For Investors
CapitalPad is a private equity co-investment group that enables accredited investors to invest in SMB acquisitions led by independent sponsors. Each opportunity involves an identified company, acquisition plan, and proposed investment terms.
Review the underlying business before making a separate commitment to the transactions you select.
For Independent Sponsors
CapitalPad invests $1M to $2.5M in equity alongside independent sponsors as a minority partner. The focus is on acquisitions of established businesses in the United States and Canada.
Sponsors can review CapitalPad’s investment criteria and submit a transaction for consideration.
SMB Investment Focus
CapitalPad’s small business private equity investments focus on operating companies with a history of profitability, established customer relationships, and durable demand. Areas of interest include business and industrial services, residential services, healthcare, manufacturing, and specialty distribution.
The investment case rests on the company’s existing earnings, acquisition price, financing, and opportunities for improvement. CapitalPad generally avoids situations that depend primarily on unproven demand or a major turnaround.
Transactions are generally below $10M in annual EBITDA and $50M in enterprise value. These are typical ranges, not fixed upper limits.
Repeat purchasing, essential services, and regulatory requirements can support durable revenue. CapitalPad examines customer retention, concentration, and the reasons customers continue to buy.
Stronger finance leadership, reliable reporting, disciplined pricing, and repeatable sales processes can improve operations and convert more revenue into earnings.
Sponsors may enter new markets, add services, or acquire complementary businesses. CapitalPad assesses the strategy, available resources, and integration requirements.
Independent sponsors identify a company before raising acquisition capital. Investors can assess a defined business, price, financing structure, and ownership plan before committing.
Why This Market
CapitalPad believes established smaller companies can offer a clearer value-creation playbook. A business may have a proven service and loyal customers while still lacking the management depth, systems, or commercial processes needed for its next stage of growth.
CapitalPad evaluates whether the sponsor has identified specific improvements, has the resources to execute them, and has proposed an acquisition price and capital structure that support the plan.
CapitalPad also favors businesses where AI is more likely to improve operations than replace the core service or customer need. Applications such as scheduling, quoting, billing, and customer communication can complement the sponsor’s broader plan for operating improvements.
Apply for investor access and complete onboarding. CapitalPad shares acquisitions after investment committee review; full diligence materials are available under NDA.
Review the business, sponsor, financials, financing, proposed terms, and key risks. If you choose to participate, request an allocation and complete the subscription documents and funding.
Each investment is held through a dedicated special purpose vehicle (SPV). Investors hold interests in that vehicle, which holds equity in the acquired business.
The sponsor works with company management on the operating plan. CapitalPad coordinates quarterly reporting and annual tax documents throughout the holding period.
“CapitalPad makes the deal sourcing and logistics of lower middle market investing easy.”
Nigel Moore
Entrepreneur, Investor
SMB investing means investing in small and medium-sized businesses. In private equity, this often involves acquiring an established company and seeking to increase its value over a multiyear ownership period. CapitalPad focuses on the acquisition side of SMB investing, giving accredited investors deal-by-deal exposure to established, historically profitable companies.
SMB describes the size of a business; the lower middle market describes a segment of private equity and acquisition activity. Definitions vary. CapitalPad targets businesses with at least $1M in annual EBITDA and $5M in enterprise value. Transactions are generally below $10M in EBITDA and $50M in enterprise value, without fixed upper limits.
CapitalPad considers established, profitable businesses across a broad range of industries. Representative examples include business and industrial services, residential services, healthcare, manufacturing, and distribution.
This list is not exhaustive. CapitalPad considers other industries when the business, sponsor, and transaction fit its investment criteria. The emphasis is on established earnings, durable demand, and practical opportunities to create value.
Accredited investors can apply for CapitalPad access, complete onboarding, and review available acquisitions. After signing an NDA, investors can examine the company, sponsor, diligence findings, business plan, and investment terms. Investors decide which transactions to participate in, request an allocation, and complete the relevant documents and funding. Opportunities are shared periodically; availability is not guaranteed.
CapitalPad accepts accredited investors who complete onboarding and meet the requirements of the offering. Individual investments generally start at $25,000 per deal. Funds, family offices, and other eligible institutions can also participate, with terms handled separately. CapitalPad accepts non-U.S. investors, subject to jurisdiction, investor status, documentation, and transaction requirements.
Participating investors hold interests in a transaction-specific CapitalPad special purpose vehicle (SPV). That vehicle holds a minority equity position in the acquired business. The independent sponsor leads the acquisition and works with company management during ownership. Investors do not take on day-to-day operating responsibilities; their rights are defined by the vehicle’s governing documents.
A traditional private equity fund generally receives commitments before its portfolio is fully identified. Through CapitalPad, an investor reviews a specific SMB acquisition before deciding whether to participate. Each transaction has its own investment vehicle, economics, and risks. Participation in one CapitalPad deal does not require participation in subsequent deals.
CapitalPad provides company information, historical financials, sponsor background, acquisition structure, proposed investor terms, diligence findings, and the operating plan. Materials also address key risks and the proposed transaction timeline. Full materials are available under NDA, and investors can direct questions to the CapitalPad team before deciding whether to request an allocation.
An SMB equity investment may generate returns through distributions during ownership and proceeds when the business is sold or refinanced. Availability and timing depend on cash flow, debt obligations, reinvestment needs, and the transaction’s distribution terms. CapitalPad presents deal-specific targets and assumptions; distributions, target returns, and an exit are not guaranteed.
CapitalPad investments typically target a three- to seven-year holding period, but an investment may take longer to realize. These are illiquid private securities, and early transfers may be restricted. Investors should not assume that a secondary market or early exit will be available. The company’s performance and market conditions affect the eventual timing.
CapitalPad generally charges a one-time 1.5% administration fee when an investment is made, with no annual management fee. CapitalPad earns 20% carried interest on profits after investors receive their initial capital back on that deal. The offering materials disclose the applicable CapitalPad economics and any other transaction-specific fees or expenses before subscription.
SMB investments can be exposed to customer concentration, dependence on key employees, ownership transitions, financing obligations, and execution risk. A company may underperform even if it has a long history of profitability. Distributions and exits can be delayed or fail to occur, and investors may lose their entire investment. CapitalPad’s review does not eliminate these risks.
CapitalPad does not provide personalized investment, legal, tax, accounting, or financial advice. Information on this website and materials made available through CapitalPad are provided for informational purposes and should not be construed as a recommendation by CapitalPad or any affiliate to purchase or sell any security.
Nothing on this website constitutes an offer to sell, or a solicitation of an offer to buy, any security. Any offer or solicitation will be made only through the applicable offering documents, subscription agreement, and related materials, and only to qualified investors in jurisdictions where the offering is permitted. In the event of any conflict between website content and the applicable offering documents, the offering documents control.
CapitalPad may rely on information supplied by sponsors, issuers, management teams, service providers, and other third parties. Although CapitalPad reviews opportunities before presenting them to investors, CapitalPad does not guarantee the accuracy, completeness, or adequacy of any information, projections, valuations, diligence materials, or other materials provided in connection with any opportunity.
Private investments made through CapitalPad are speculative, illiquid, and involve a high degree of risk, including the possible loss of all invested capital. Securities may be unregistered, restricted, not listed on any exchange, and subject to transfer limitations. There may be no secondary market, and investors should be prepared to hold investments for an indefinite period. Investments are not FDIC insured, not bank guaranteed, and may lose value.
Past performance of any company, sponsor, individual, fund, strategy, or prior investment is not indicative of future results. Any projections, forecasts, target returns, forward-looking statements, or other estimates are based on assumptions that may prove incorrect, may not materialize, and should not be relied upon as a guarantee of future performance.
Investors are responsible for reviewing all deal materials and conducting their own independent diligence before making an investment decision. Investors should consult their own legal, tax, accounting, financial, and other advisers before investing.
Investments may involve limited or no voting rights, and investors should assume they will not control or influence the management or operations of any underlying company. CapitalPad and its affiliates may receive fees, carried interest, or other economic benefits and may have conflicts of interest, each of which will be disclosed in the applicable deal materials.
Nothing in these disclosures is intended to waive any rights or remedies that cannot be waived under applicable federal or state securities laws.
