Build a Passive Small Business Portfolio

CapitalPad features deals from sponsors acquiring an existing profitable SMB (small and medium-size business).

These are not startups. They are generally established companies that have operated successfully for many years. Common examples are home services (HVAC, plumbing), consumer services (dry cleaners, towing), light manufacturing, and digital services (like an agency).

The acquirer is partnering with accredited investors on CapitalPad to fund the deal.

Investors receive equity and share in the company’s future cash distributions while operating the business and the capital gains upon an exit, if the company is sold in the future.

Each deal includes a full business description, investor terms, estimated returns, historical financial statements, an acquirer profile, and extensive access to due diligence documents.

Accredited investors choose to co-invest on a per-deal basis.

When allocations from all investors have been submitted CapitalPad will send out the SPV subscription documents for you to sign, followed immediately by a capital call to fund the deal.

Investment allocation amounts are frequently limited.

Access to deals is on a first-come, first-served basis, and occasionally requested allocation amounts will need to be reduced.

After funding a deal, funds will remain in the SPV bank account until the acquisition officially closes (generally 2-3 weeks).

For deals that are utilizing an SBA loan, bank statements and funding proof will be required due to SBA guidelines.

Post-closing, the sponsor will begin updating investors on the progress of the business on a quarterly basis.

Yes.

All investors must be accredited investors according to the SEC definition.

This applies to both US individuals and non-US individuals.

$10,000 per deal (for accredited investors only)

CapitalPad does not charge sponsors for raising money on the platform.

CapitalPad receives a 20% carry fee from investors. After investors receive their invested capital back, CapitalPad then shares in 20% of the profits.

Each deal has a small administration fee that is shared by all investors to create and maintain the SPV and for annual tax forms.

No cost to searchers, and investors only pay once an investment is profitable.

Investors receive equity and share in the company’s future cash distributions from business operations and the capital gains upon an exit, if the company is sold in the future.

Each deal will have a different distribution policy.

Some deals target a quarterly distribution (wired to your bank account), while others may aim to reinvest profits or pay down debt.

Details on the proposed policy are available on each deal listing.

Unlike publicly traded equities, private SMB deals on CapitalPad do not have liquidity outside of any distributions or realized capital gains upon exit.

We love sending deals to friendly funds.

Our #1 goal is to help sponsors raise the capital they need to close, whether on our platform or elsewhere.

If your fund would like to be sent deal flow please contact us.

CapitalPad does not provide specific investment advice to any individual investor. The information on this website specifically related to any potential investment opportunity is not provided by CapitalPad. Investors acknowledge and accept the risks associated with privately investing. Investors also acknowledge that past performance of entities, individuals, or products or services is not a guarantee of future performance. Investors are solely responsible for completing an independent due diligence review before investing. Investment products are not FDIC insured, may lose value, and there is no bank guarantee. A loss of an Investor’s entire investment is possible, and no profit may be realized. There is no guarantee that projections related to the performance of any potential investment will be realized. There may be no secondary market for the sale of securities. Any investment may not be accompanied by sufficient voting rights to have a material impact as to the operation of the entity and all Investors should assume any such investment will not be accompanied by meaningful voting rights.

Past performance is no guarantee of future results and any expected returns on disclosed through the platform are hypothetical and may not reflect actual future performance. All investments made through the platform may result in partial or total loss.