Quickly Raise Capital for SMB Acquisitions

The process is simple. 

Create an account, post the deal information when you have a ready deal. If approved, we then share it with a group of interested accredited investors.

Once a deal is live, accredited investors are then presented with a teaser of your deal, an NDA, and a non-circumvention agreement. Once signed, investors can view the entire presentation, deal room, and memo.

Investors can choose to allocate if they find it attractive.

CapitalPad takes all investors and pools them into a single new SPV (a dedicated LLC). This means that sponsors do not need to deal with many varied investors. Instead, only one entity (the SPV) is on the cap table; one signature is needed for closing, one location for updates, and only one entity is needed for distributions and tax documents.

Say goodbye to chasing down dozens of hard-to-reach investors.

CapitalPad makes acquisition-entrepreneurship easier for sponsors and makes finding and allocating to deals easier for investors. 

Win-win.

Zero. Absolutely nothing.

Entrepreneurship through acquisition (ETA) can be a challenging path. We do not charge entrepreneurs for closing deals.

CapitalPad is instead compensated by a 20% carry from investors. After investors receive their invested capital back, CapitalPad then shares in 20% of the profits from those investors. 

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

Each deal includes a full business description, investor terms, estimated returns (IRR), financial statements, profile of the acquirer, and access to due diligence documents.

CapitalPad does not make investing decisions for the investors on the platform. CapitalPad presents each deal to investors, who decide for themselves based on its merits.

It varies deal by deal. Investors expect the standard market terms for acquisition industry.

For Self-funded searchers:
Standard market terms for the self-funded search fund industry are: Preferred shares, an 8-15% preferred return, 1x liquidation preference, a 1.5x to 2.5x step-up (conversion of preferred shares to common shares), and an estimated IRR over 30%.

All deals are welcome, but deals that get the most interest:

1. Target a return of initial investor capital in under three years.
2. Plan to pay regular distributions. 

For Independent Sponsors:
The terms for independent sponsors should be largely in line with the McGuire Woods Independent Sponsor Survey. We are happy to discuss this.

The better terms you offer, the easier it is to attract investors and raise.

At this moment, it depends on the size.

Yes, for many deals, but for capital needs above our investor base, we will happily connect you with other funds in the space with whom we can co-invest.

We help sponsors close their deals, regardless of where the capital comes from.

Note* If you are a fund that would like to see available deal flow, please reach out.