CapitalPad for Sponsors
No cost to sponsors at any stage
Sponsor-Led Acquisitions
CapitalPad is a private equity co-investment group investing in the lower middle market. We invest in independent sponsor deals through a select base of accredited investors, with institutional partners participating where additional equity capacity is appropriate.
We typically invest $1M to $2.5M of equity per transaction. Individual investors are coordinated into a single commitment. One SPV. One wire. One partner through close.
Deals are reviewed with a focus on company quality, sponsor fit, structure, economics, and path to close.
A select investor base with experience evaluating sponsor-led acquisitions in the lower middle market.
Individual commitments are aggregated into a single SPV, giving sponsors one subscription, one wire, and one cap table entry.
CapitalPad charges sponsors nothing at any stage. We earn carry from our investors when the investment performs.
Our Sweet Spot
CapitalPad backs established, profitable lower middle market companies acquired predominantly through the independent sponsor model.
Target profile:
We occasionally review opportunities outside this profile, including self-funded searcher deals, when business quality, sponsor fit, structure, and investor economics are exceptionally compelling.
Industry Focus
We are industry-agnostic, but we favor established, profitable businesses with durable demand and low exposure to disruption. We are more cautious on technology-driven categories where that durability is harder to underwrite.
Example industries:
Our Process
Every deal is evaluated against company quality, sponsor track record, deal structure, and economics. Our investment team confirms terms align with what our network expects, and works with sponsors on small adjustments when useful for clarity. We provide clear feedback within 2-3 business days, regardless of outcome.
Approved deals are presented to CapitalPad’s investor network as a blinded teaser. Investors who want to evaluate the full opportunity sign an NDA and non-circumvention agreement before accessing deal materials and the data room. Sponsors retain control over what is shared with whom.
CapitalPad hosts a single investor Q&A call to address questions about the deal directly. Investors then submit their allocation amounts within a defined window. Sponsors handle one Q&A session rather than dozens of individual investor calls.
Individual investor commitments are coordinated into a single SPV. Sponsors receive one signed subscription, one wire, and one cap table entry, ahead of close.
CapitalPad expects quarterly investor updates, similar to other institutional investors. Our team stays engaged as a resource, providing operational and strategic support from vetting service providers to advising on growth, follow-on financing, and exit planning.
The CapitalPad Team
Sponsors with a deal under LOI should be prepared to share the following before review.
CapitalPad primarily backs independent sponsor-led acquisitions of established lower middle market companies.
Deals must be under LOI, with strong historical profitability and a clear path to close.
We are industry-agnostic but favor durable, lower-disruption businesses, with little reliance on technology trends.
Our typical profile is a company with $1M to $7M of EBITDA, $5M to $30M of enterprise value, and operations in the United States or Canada. We selectively review opportunities outside this profile, including self-funded searcher-led acquisitions, when the business quality, buyer fit, structure, and investor economics are exceptionally compelling.
CapitalPad invests across durable, essential, and non-discretionary industries. We generally favor established businesses with recurring or repeat demand, low disruption risk, low technology or AI-risk, strong customer retention, and a clear path to continued profitability.
Representative sectors include:
We selectively review opportunities outside these categories when the company has strong historical profitability, durable demand, attractive unit economics, and a structure that fits our investment criteria.
CapitalPad primarily reviews transactions in the United States and Canada.
We may consider other geographies on a selective basis, but they are not the current focus.
CapitalPad does not charge sponsors fees at any stage. There is no cost to submit a deal, no sponsor-paid placement fee, and no sponsor-paid success fee.
CapitalPad earns carry from its investors when the investment performs.
CapitalPad’s investor group includes a select base of accredited investors, with funds, family offices, and institutional partners participating where additional equity capacity is appropriate.
Members are expected to understand sponsor-led acquisitions, deal-by-deal investing, and the economics typically used in independent sponsor transactions.
Approved opportunities are first presented on a blinded basis. Investors who want to evaluate the full opportunity must execute an NDA and non-circumvention agreement before receiving identifying information, deal materials, or data room access.
Most submissions receive an initial response within 2–3 business days.
If the opportunity appears to fit, CapitalPad will request additional materials, confirm key transaction details, and determine whether the deal should move forward for a deeper review.
If a deal is not approved, CapitalPad will provide feedback where appropriate. Submission materials from unapproved deals are treated as confidential and are not shared with investors.
CapitalPad typically invests $1M to $2.5M of equity per transaction.
For larger equity needs, additional funds, family offices, or institutional partners may participate where appropriate. These situations are evaluated deal by deal.
No. CapitalPad invests equity.
We do not provide senior debt, mezzanine financing, or SBA financing. When appropriate, we may point sponsors toward debt providers familiar with independent sponsor transactions, but CapitalPad’s role is as an equity co-investor.
CapitalPad generally expects market-standard independent sponsor economics that balance sponsor incentives with appropriate investor protections.
Typical structures may include an acquisition fee, ongoing management fee, preferred return, and carried interest tied to return hurdles. Deals that fall materially outside market norms are harder to underwrite and may be more difficult to support.
Participating investors are generally coordinated into a single SPV that invests directly into the sponsor’s transaction.
That gives the sponsor one subscription process, one wire, and one cap table entry rather than managing a fragmented group of individual investors through closing.
In some cases, larger institutional commitments may invest directly alongside the SPV.
CapitalPad remains engaged after close as an active co-investor. We generally expect quarterly updates consistent with institutional investor reporting.
Support varies by deal but may include strategic guidance, service provider introductions, operating support, follow-on financing perspective, add-on acquisition review, and exit planning.