CapitalPad features deals from sponsors acquiring existing profitable SMBs (small and medium-size businesses).

Deals include both independent sponsor deals and self-funded searcher deals from the entrepreneurship-through-acquisition (ETA) space.

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 B2B digital services (agencies, IT).

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. These distributions come from either distributable profits from operations of the business (profit share) and/or capital gains upon an exit, if the company is sold in the future.

Each deal includes a detailed business description, investor terms, modeled potential investor returns, historical financial statements, sponsor 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 administrators 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, sponsors will update investors at least 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.

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

Some deals require larger minimums.

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 any 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 sponsors, 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.

If you represent an entity that can write checks $750,000 or larger, please reach out and we can connect you directly with available deals.

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.