CapitalPad for Investors
Join 1,200+ accredited investors
Accredited Investors Only
CapitalPad is a private equity co-investment group focused exclusively on the lower middle market. Members review curated deals one at a time and build a diversified portfolio of established, historically profitable businesses, alongside experienced deal sponsors.
From HVAC to healthcare, manufacturing to business services, every deal is an acquisition of an established company in an industry built on enduring demand.
Minimums start at $25,000 per deal. Deals are posted only when they clear our underwriting, averaging one per month.
The Asset Class
Industrial maintenance, home services, specialty trades, and essential B2B operations. Businesses with multi-year financial histories, recurring customer bases, and defensible market positions.
Companies built on physical assets, licensed workforces, and entrenched customer relationships. Less exposed to the AI and technology shifts reshaping software and consumer markets.
Acquisitions led by experienced independent sponsors and search fund principals who source, structure, and close each transaction. Typically $1M to $5M EBITDA. No blind pools, no fund commitment.
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 network.
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.
The traditional private equity model pays managers annually regardless of outcome. Ours does not.
Why CapitalPad
$1M+ fund commitments
Family office access
Blind-pool commitments
Proprietary sourcing
GP relationships
Institutional minimums
Ongoing capital calls
In-house legal & diligence
Annual management fees
Full-time deal evaluation
$25K minimums
Institutional co-investors
Deal-by-deal choice
Curated deal flow
Experienced operators
Clear investor terms
Aligned incentives
Standardized deal rooms
Built in diversification
Streamlined closing
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 access to a full diligence package: investment memo, sponsor background and interview, financials, tax returns, models, deal structure, and investor terms. You can ask questions directly through the platform.
3: Request an allocation
If you decide to participate, submit your allocation request. Minimums start at $25,000 per deal. 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.
Investors receive quarterly updates on every portfolio company, including financial performance, operational developments, and distribution status. Annual K-1s are issued for each investment.
Build exposure across operators, industries, and deal types at your own pace. Investment minimums start at $25,000 per deal.
Each deal room provides access to:
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 lower middle market acquisitions, a segment where pricing remains reasonable and institutional capital is less concentrated. Target transactions typically fall between $5M and $30M in enterprise value, with underlying companies generating $1M to $5M 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 industries with stable demand and low disruption risk: home services, professional services, healthcare services, light industrial, local consumer services, and business services. 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 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.
If an account is approved, investors access the CapitalPad dashboard, where new deals are posted with a complete diligence package including the deal memo, sponsor overview, investor terms, deal structure, financial diligence materials, financial models, sources and uses, value creation plan, and sponsor interview. Investors can review the materials, ask questions directly, 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 to cover administrative costs. There is no annual management fee.
Traditional private equity typically charges a 2% annual management fee regardless of performance, plus 20% of profits after investors receive their capital back. CapitalPad does not charge the annual fee. We earn 20% of profits only after investors have received their full initial capital back. We succeed only when investors succeed.
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.
All private equity investments involve risk, and there is no guarantee of returns. While CapitalPad targets established, profitable companies with durable business models, outcomes can vary significantly.
If a portfolio company underperforms, distributions may be reduced or paused entirely. In a worst-case scenario, such as business failure, investors could lose their entire investment with no possibility of recovery.
These investments are also illiquid, meaning capital may be tied up for years with no secondary market available.
Investors should only commit funds they can afford to lock up for an extended period and are prepared to lose completely.
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.