CapitalPad for Investors
Accredited Investors Only
For Accredited Investors
Lower middle market acquisitions, meaning established, profitable private businesses in the $5M to $30M range, have mostly been closed to individual investors. The deals go to funds, family offices, and people who know the sponsor.
CapitalPad opens these deals to accredited investors. The acquisitions are led by independent sponsors and search fund operators. Members review each transaction individually and decide whether to request an allocation. Those who participate invest through a deal-specific SPV.
There is no fund commitment, no scheduled capital calls, and no obligation to invest in any future deal.
Platform acquisition with identified add-on targets and a defined buy-and-build plan.
The Asset Class
Established, profitable businesses with years of financial statements and long-standing customer relationships. Most have run under the same model for a decade or more. We underwrite operating history, not projections.
Plumbing contractors with fifteen years of service agreements. Testing labs that certify what regulation requires. Demand holds because the work is necessary and difficult to defer.
What We Look For
CapitalPad targets acquisitions with the following profile:
What we avoid: Startups, distressed assets, heavy turnaround dependence, and venture-style growth bets.
Where We Invest
CapitalPad focuses on durable, bread and butter industries. The kind that existed 30 years ago and will still exist 30 years from now.
Sectors include:
This list is representative, not exhaustive. Plenty of quality businesses fall outside these categories.
Our Process
We maintain active relationships with independent sponsors and search fund operators across North America. Most deals come to us directly from sponsors who know our process and our group.
Every deal is reviewed against financial history, customer concentration, industry exposure, operator track record, debt structure, and deal economics. Fewer than 5% of deals we review are presented to our investors.
We negotiate alongside the sponsor to secure market-standard minority investor protections, reporting requirements, and alignment on promote and waterfall.
We pool committed investors into a single SPV per deal. One wire, one signature, one clean ownership position for each investor.
After close, we monitor performance, review sponsor reporting, coordinate distributions and tax filings, and stay in contact with operators through the hold period.
CapitalPad charges a one-time 1.5% administration fee per investment. There is no annual management fee.
CapitalPad earns 20% of profits, paid only after investors have received their full capital back.
Why CapitalPad
$1M+ fund commitments
Reserved for institutions
Blind-pool commitments
Ongoing capital calls
Annual 2% management fees
Proprietary sourcing
Full-time deal evaluation
In-house legal & diligence
$25K per-deal minimums
Invest alongside institutions
Deal-by-deal choice
One commitment per deal
One-time 1.5% fee
Sponsor-led deals
Underwritten deal flow
Standardized deal rooms
The traditional path required institutional scale. Now accredited investors co-invest in the same deals as funds and family offices.
How It Works
Complete a short application. We verify accredited investor status and review each applicant. Approval typically takes one business day.
When a deal clears underwriting, you receive the complete investor diligence package for that transaction and can ask questions directly through the deal room.
If you decide to participate, submit your allocation request. Minimums start at $25,000 per deal. There is no commitment to invest in future deals.
After closing, you hold equity in the acquired business through a single SPV. Investor returns are structured through operating distributions during the hold period and capital gains at exit. Typical hold is 3 to 7 years.
Every deal is structured through a single SPV with market-standard investor protections and defined governance rights.
Investors receive updates on every portfolio company covering financial performance, operational developments, and distribution status. Annual K-1s are issued for each investment.
You review every deal individually. There are no scheduled capital calls and no minimum number of investments.
Build exposure across operators and industries at your own pace.
“CapitalPad has made investing in acquisition deals much easier. They find the deals, present them simply, and make the closing process painless.”
Each deal room provides access to:
CapitalPad combines two track records. One is deep operating experience building and running companies. The other is institutional private equity and independent sponsor experience. Every deal is underwritten through both lenses, the operator’s and the investor’s. Meet the team →
CapitalPad is available exclusively to accredited investors who complete our onboarding and verification process.
Individual accredited investors can participate with commitments starting at $25,000 per deal.
Yes. Funds, family offices, and SBICs active in the independent sponsor space are welcome.
A minimum commitment of $750,000 per deal is required for direct deal flow access. Institutional status can be designated during onboarding.
Yes. CapitalPad supports investments made through self-directed IRAs and similar vehicles. When allocating to a deal, you can designate the entity through which you will invest.
For accredited individuals, minimums start at $25,000 per deal.
Institutional investors seeking direct access commit a minimum of $750,000 per deal.
CapitalPad is a deal-by-deal private equity co-investment group focused on investing in lower middle market acquisitions. Target transactions typically fall between $5M and $30M in enterprise value, with underlying companies generating $1M to $7M in EBITDA.
Most deals fall into two categories:
Independent sponsor deals. Independent sponsors are private equity professionals who identify and structure acquisitions without managing a committed fund. Capital is raised on a deal-by-deal basis after a specific target has been identified and an LOI has been signed. The sponsor leads the transaction and manages the business post-close.
Post-LOI search fund deals. Search fund operators identify a target, secure an LOI, and raise acquisition capital for that specific deal. Like independent sponsors, they take an active role in operating the business after close.
Target companies are established, historically profitable businesses in durable industries: residential and commercial trades, healthcare and provider services, testing and compliance, specialty distribution, auto and fleet services, professional and business services, and light industrial. These are operating businesses with years of financial history and recurring customer relationships, not startups or turnarounds.
Traditional private equity funds require investors to commit capital upfront and trust the manager to deploy it across deals over several years. CapitalPad works differently. Each deal is presented individually, and investors decide whether to participate on a case-by-case basis. There is no fund commitment, no scheduled capital calls, and no annual management fee. Investors see exactly what they are investing in before any capital moves.
Deals are posted only when they meet our underwriting standards. We invest in fewer than 5% of the deals we review. Investors are typically presented with one opportunity per month, though cadence varies based on deal quality rather than a fixed schedule.
Once approved, investors access the CapitalPad dashboard, where new deals are posted with a complete diligence package: deal memo and sponsor overview, company description and investment merits, LOI and deal structure, investor terms, debt financing details, financials and diligence materials, post-close value creation plan, distribution waterfall, and a recorded sponsor interview. Investors review the materials, ask questions directly through the deal room, and request an allocation to co-invest.
Most deals are structured for a 3 to 7 year hold, though this varies by deal and sponsor strategy. Each deal’s target hold period is disclosed in the deal materials before investors commit capital.
Returns vary by deal. Some deals generate quarterly or annual cash distributions from operating cash flow during the hold period. Others reinvest earnings to grow the business and return capital through a later recapitalization or sale. The distribution approach for each deal is disclosed in the deal materials, so investors know what to expect before committing capital.
We charge a one-time 1.5% administration fee at the time of investment. There is no annual management fee.
Traditional private equity typically charges a 2% annual management fee regardless of performance, plus 20% of profits. CapitalPad does not charge the annual fee. We earn 20% of profits only after investors have received their full initial capital back.
Each investment issues an annual K-1 for tax filing. Because each deal is structured through its own single-purpose vehicle, investors receive one K-1 per investment. K-1s are delivered through our SPV administrator.
Like all private equity investments, CapitalPad deals are illiquid and designed for long-term ownership. While cash distributions may occur during the holding period, many returns are typically realized at exit. There is no secondary market, and investors should expect to hold for the full duration.
Private equity investments 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 there may be no secondary market to sell an investment early. Investors should review all deal materials and conduct their own independent diligence before making any investment decision.
CapitalPad does not provide individualized investment advice, nor does it author or guarantee the information contained in deal materials. Investors acknowledge and accept the risks associated with private investments, including the possibility of a total loss of capital.
Past performance of entities, individuals, or products is not a guarantee of future results. Any return projections are hypothetical in nature and may not reflect actual future performance.
Investors are solely responsible for conducting their own independent due diligence before making an investment decision. Investments offered through CapitalPad are not FDIC insured, may lose value, and carry no bank guarantee.
There may be no secondary market for securities, and investments may not provide voting rights sufficient to influence the management or operations of a company.
All investments made through the platform involve risk and may result in partial or total loss.
