CapitalPad for Sponsors
No cost to sponsors
Sponsor-Led Acquisitions
CapitalPad is a private equity co-investment group investing in independent sponsor transactions in the lower middle market.
We typically invest $1M to $2.5M per transaction through our base of accredited individual investors. One SPV. One wire. Where a deal calls for more equity, institutional partners commit additional amounts separately.
Sponsors pay nothing at any stage: your closing fee, management fee, and promote stay yours, and we are compensated only through carried interest from our own investors. Deals are reviewed for company quality, sponsor fit, structure, economics, and path to close. We expect market-standard independent sponsor terms.
We occasionally review opportunities outside this profile, including search fund deals, when business quality, sponsor fit, structure, and investor economics are exceptionally compelling.
Our Approach
The deals that CapitalPad invests in share a pattern: established companies serving demand that holds through economic cycles. A property manager keeps paying for HVAC service in a recession. A hospital keeps ordering compliance testing. That persistence is what we underwrite.
We are industry-agnostic. We do not review startups, distressed assets, heavy turnarounds, or venture-style growth stories. We favor businesses where the next five years look like the last five.
The list here is representative rather than exhaustive. Company and thesis quality decide the review. If your target shows durable demand and real cash flow in an industry we have not named, submit it.
Industry Focus
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 LPs expect 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 group 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.
Every transaction runs on its own timeline, so we commit to communication rather than a standard clock: sponsors have visibility into allocation progress throughout, and if demand is tracking below target, we say so immediately rather than letting a raise drift against your exclusivity window.
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 consistent with institutional reporting norms. 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.
“CapitalPad was instrumental in helping close our transaction. They’ve remained excellent partners even after the close, leveraging their professional backgrounds to help modernize the business. Looking forward to working with the CapitalPad team in the months and years to come.”
The CapitalPad Team
CapitalPad brings together two complementary track records. One side, deep operating experience building and running companies. The other, institutional private equity and independent sponsor experience. Sponsors work with counterparts who understand both sides of what they are doing. Meet the team →
Sponsors should be under LOI, with a prepared deal memorandum.
We expect the memo to cover the target and its financial history, acquisition terms, sources and uses, the debt financing plan, proposed investor economics, sponsor background, and the post-close plan.
Sponsors should be under LOI, with a prepared deal memorandum.
We expect the memorandum to cover the target and its financial history, acquisition terms, sources and uses, the debt financing plan, proposed investor economics, sponsor background, and the post-close plan.
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.
We take a deal to investors only when we have conviction it will fund; that standard is what the review process protects, and it is why we would rather decline a deal at review than fail it at funding. During the allocation window, sponsors have visibility into commitment progress. If demand is tracking below target, we communicate that immediately and work through the options with the sponsor directly, rather than letting the process drift. We do not quote a standard submission-to-close timeline because every transaction is different, but at no point in ours will you be left guessing where things stand.
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.