CapitalPad connects accredited investors, funds, and family offices with independent sponsor–led acquisitions in the lower middle market.
CapitalPad connects accredited investors, funds, and family offices with independent sponsor–led acquisitions in the lower middle market.
Gain access to curated independent sponsor opportunities across the lower middle market. CapitalPad evaluates hundreds of deals and delivers only the most compelling transactions.
CapitalPad partners with independent sponsors to provide equity for acquisitions. We invest directly and bring in a network of accredited investors, funds, and family offices to close your deal.
CapitalPad for Investors
CapitalPad provides accredited investors access to curated independent sponsor–led acquisitions in the lower middle market. We focus exclusively on established, cash-flowing businesses led by experienced sponsors—not speculative turnarounds or venture plays.
Unlock differentiated deal-flow in this compelling corner of private equity through CapitalPad’s disciplined approach—rigorously reviewed opportunities, aligned incentives, and streamlined participation.
CapitalPad rigorously evaluates sponsor-led opportunities and approves only those that meet strict standards for profitability, durability, and operator quality.
Independent sponsor deals have historically offered compelling outcomes relative to other private markets, with strong alignment between sponsors and investors.
CapitalPad gives direct access to funds, family offices, and SBICs. Individual investors are pooled into an SPV, gaining the benefits of institutional investors at a lower entry point.
CapitalPad invests directly in independent sponsor deals, giving you a capital partner who understands your model and can move quickly.
While larger funds go direct, smaller investors are pooled into a single entity. One partner, one wire, simplifying execution and reducing closing friction.
Our incentives are directly tied to your success. Beyond capital, we bring deep private equity and operating expertise to help sponsors build enduring companies.
CapitalPad for Sponsors
CapitalPad invests equity in independent sponsor–led acquisitions, alongside a trusted network of family offices, funds, and accredited investors.
Fill your equity gap and close transactions with speed and certainty.
Built by a team with deep expertise in private equity and lower middle market transactions, CapitalPad combines institutional rigor with operational insight to support independent sponsor acquisitions.
Access a curated pipeline of independent sponsor opportunities in the lower middle market. Participate in a differentiated private equity strategy with confidence, clarity, and alignment.
Close with certainty. CapitalPad invests directly in deals and brings a trusted network of investors to get your deal over the finish line.
Our disciplined approach and sponsor-focused model have resulted in dozens of successfully closed transactions across industries and deal types.
No. Raising capital through CapitalPad is free for sponsors. We only earn carry (from pooled investors) if the deal is successful, fully aligning our incentives with yours.
CapitalPad can provide a signal within days and commit capital in as little as two weeks, however larger capital requirements typically require more time. The more time allowed, the larger the potential allocation. 30+ days is preferred.
We are industry-agnostic but focus on lower middle market businesses with durable demand, strong recurring revenue, low cyclicality, and clear profitability. We do not invest in speculative startups or distressed turnarounds.
It’s driven by the sponsor. CapitalPad can be a hands-on partner in certain deals or a passive co-investor in others, depending on your preferences.
CapitalPad is open exclusively to accredited investors and institutions. All investors must complete our onboarding process for approval.
Yes. We actively work with funds, family offices, and SBICs who want access to independent sponsor opportunities. Institutional investors can designate their status during onboarding.
$25,000 per deal for individual accredited investors. Institutions are typically expected to participate $750,000 or higher levels.
Once approved, investors gain access to the CapitalPad dashboard. Opportunities are posted only when approved, and each includes a full diligence package with:
Investors review the materials and choose to co-invest on a deal-by-deal basis.
Independent sponsor investments are long-term and illiquid. While investors may receive cash distributions during ownership, most returns are realized at exit when the company is sold.
CapitalPad is aligned with investors. CapitalPad charges a one-time (not annual) 1.5% management fee to help cover costs, and then only participates in the upside via a 20% carry (profit share).
Institutional investors allocating $750k or more do not pay a carry or management fee, as they invest directly.
The independent sponsor model is a deal-by-deal approach to private equity investing. Instead of managing a committed fund, independent sponsors identify attractive lower middle market companies, negotiate transactions, and then raise equity from investors for each deal individually. This structure offers flexibility to sponsors, who can pursue opportunities across industries and capital partners, while giving investors discretion to evaluate and commit to specific transactions rather than a blind pool.
Independent sponsor–led acquisitions have become one of the most attractive and steadily growing segments of private equity. This model focuses on acquiring lower middle market companies.
The strategy emphasizes established, cash-flowing businesses with durable demand, recurring revenue, and proven profitability. Sponsors typically target companies with strong operating histories, low cyclicality, and limited risk of technological disruption—providing investors with exposure to stable industries rather than speculative ventures or distressed turnarounds.
Sectors commonly pursued include business and industrial services, healthcare, consumer services, light manufacturing, technology-enabled services, and professional services. These industries share characteristics of resilience, fragmentation, and long-term growth opportunities, making them well suited for the independent sponsor model.
According to the McGuideWoods Independent Sponsor Survey, the common economics in independent sponsor transactions are the following:
CapitalPad provides independent sponsors with a trusted, aligned capital partner. CapitalPad’s approach combines deep transaction expertise with the flexibility to support sponsors at every stage of the acquisition.
CapitalPad is one of the top independent sponsor investors due to:
Independent sponsors operate without a committed pool of capital, raising equity from investors for each transaction once a company is identified. Search funds, by contrast, secure capital upfront from backers to cover the search process itself, typically committing to acquire a single business. This makes independent sponsors more flexible in pursuing multiple or larger transactions, while search funds are generally narrower in mandate and operator-driven.
Independent sponsors are usually former private equity professionals or corporate executives pursuing institutional-quality acquisitions with backing from family offices, funds, and accredited investors. Self-funded searchers, on the other hand, finance their own search expenses and often target smaller deals, leaning on personal savings and modest investor syndicates once an LOI is signed. Independent sponsors typically pursue larger, more complex deals with structured economics, while self-funded searchers focus on owner-operator transitions at a smaller scale.
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.