Deal-by-deal co-investments in search fund acquisitions of established, profitable businesses.
Deal-by-deal co-investments in search fund acquisitions of established, profitable businesses.
For Investors
Invest alongside CapitalPad in search fund acquisitions of established, profitable lower middle market businesses.
CapitalPad is a private equity co-investment group through which accredited investors can invest deal by deal in traditional search fund, self-funded search, and independent sponsor private equity transactions.
For Searchers
CapitalPad provides equity for independent sponsor and search fund acquisitions of established, profitable businesses in the United States and Canada.
CapitalPad evaluates transactions once a business is under LOI. Sponsors and searchers can submit an overview of the company, proposed capital structure, and operating plan for review.
Search Fund Investments
CapitalPad invests at the acquisition stage in both traditional search fund and self-funded search deals. Once a business is under LOI, investors can assess historical earnings, customer relationships, the purchase price, and the proposed financing.
CapitalPad evaluates the searcher’s operating capabilities alongside the business and transaction terms. Investors participate deal by deal, funding the acquisition rather than the search for a company.
Transactions are generally below $50M in enterprise value and $10M in annual EBITDA. These are typical ranges, not fixed upper limits.
CapitalPad focuses on established businesses with a history of profitability. The review examines earnings quality, customer retention, working capital requirements, and the durability of demand.
The searcher typically becomes the company’s CEO. CapitalPad evaluates relevant experience, judgment, incentives, and the management resources needed to lead the business.
Professionalization can strengthen financial reporting, pricing, and sales execution. CapitalPad considers which improvements matter most, who will implement them, and how they support earnings growth.
CapitalPad evaluates purchase price, leverage, and investor terms alongside the ownership transition. The review covers seller involvement, employee retention, and the proposed governance structure.
The Investment Case
Search fund investing combines ownership in an established company with an entrepreneur’s commitment to lead it. The opportunity depends on both the quality of the business and the incoming operator’s ability to build on what already works.
CapitalPad believes smaller companies often present identifiable opportunities for professionalization and growth. A focused operator can develop the management team, improve commercial processes, and pursue expansion or complementary acquisitions.
The plan must fit the company and the person responsible for executing it. CapitalPad assesses the resources, incentives, and support available to the searcher, alongside the economics of the acquisition and the demands of the ownership transition.
After onboarding, eligible investors can review independent sponsor and post-LOI search fund investment opportunities. Materials provided under NDA cover the company, sponsor or searcher, historical financials, diligence findings, proposed financing, and investment terms.
Evaluate the operating plan and key risks, direct questions to CapitalPad, and request an allocation in the transactions you select. Once an allocation is confirmed, complete the subscription documents and fund your investment.
Investors participate through a special purpose vehicle (SPV) dedicated to the acquisition. The CapitalPad vehicle holds a minority equity interest, while the searcher typically takes responsibility for running the company.
CapitalPad coordinates quarterly updates and annual tax documents. Distributions and the eventual realization of the investment depend on business performance, financing obligations, and the deal’s terms.
“CapitalPad makes the deal sourcing and logistics of lower middle market investing easy.”
Nigel Moore
Entrepreneur, Investor
Accredited investors can invest through CapitalPad in select traditional search fund and self-funded search deals. CapitalPad is a private equity co-investment group, with investors participating deal by deal through transaction-specific investment vehicles.
After completing onboarding, investors review the business, searcher, diligence findings, and proposed investment terms under NDA before deciding whether to participate.
Search fund opportunities are available selectively, without a fixed offering schedule.
Yes. Accredited investors can invest through CapitalPad in select self-funded search deals. “Self-funded” refers to the searcher financing the search independently; outside investors may provide equity to complete the acquisition.
CapitalPad invests after a business is under LOI. Investors evaluate the company’s earnings, the searcher’s operating capabilities, financing, and investment terms before deciding whether to participate.
CapitalPad focuses on businesses with established operating histories, historical profitability, durable customer demand, and practical growth opportunities. Its general investment criteria start at $1M in annual EBITDA and $5M in enterprise value. Transactions are typically below $10M in annual EBITDA and $50M in enterprise value, although these are not fixed upper limits.
Representative industries include business and industrial services, residential services, healthcare, manufacturing, and distribution. The list is illustrative, not exhaustive. CapitalPad also considers other industries when the business, sponsor or searcher, and transaction meet its investment criteria.
Participation is open to accredited investors who complete CapitalPad onboarding and satisfy the offering requirements. Individual minimums generally begin at $25,000 per investment. Family offices, funds, and other eligible institutions can discuss participation and terms with CapitalPad.
CapitalPad also accepts non-U.S. investors, subject to the relevant jurisdiction, investor qualifications, tax documentation, and offering requirements.
Under NDA, investors can review the business description, historical financials, searcher background, diligence findings, acquisition financing, operating plan, and proposed investor terms. The materials identify key risks and the anticipated closing process. Investors can ask CapitalPad questions before committing and should assess both the company and the searcher’s readiness to lead it.
Investors subscribe for interests in a CapitalPad SPV formed for a particular transaction. The SPV holds a minority equity stake in the acquired business. Economic rights, voting provisions, reporting obligations, and other investor protections depend on the governing documents. Investing in one acquisition creates no commitment to participate in another.
CapitalPad generally targets holding periods of three to seven years, although an investment may last longer. Proceeds may come from distributions during ownership, a refinancing, or a sale of the business. Timing and amounts depend on operating results, debt obligations, reinvestment needs, and the distribution waterfall.
These investments are illiquid. There is no assured early exit, and neither distributions nor a return of capital is guaranteed.
CapitalPad’s usual economics are a one-time administration fee of 1.5% at investment and 20% carried interest on profits after the initial invested capital is returned. There is no annual CapitalPad management fee. Investors should review the offering documents for the applicable terms, including any searcher economics, transaction expenses, or other charges.
An ownership transition can test an incoming CEO’s ability to retain employees and customers, manage cash flow, and execute the business plan. Search fund investments also carry company concentration, leverage, valuation, and liquidity risks. Historical profitability does not ensure future performance, and investors can lose all invested capital. CapitalPad’s diligence cannot eliminate these risks.
CapitalPad is a private equity co-investment group through which accredited investors can invest deal by deal in traditional search fund, self-funded search, and independent sponsor transactions.
CapitalPad focuses on investments in established, profitable lower middle market businesses. It invests at the acquisition stage, once a business is under LOI, providing investors the opportunity to evaluate a specific company, operating plan, and investment structure before committing capital.
A search fund enables an entrepreneur to find, acquire, and lead an established business with investor backing. The entrepreneur, known as the searcher, typically becomes the company’s CEO after the acquisition. This model is a form of entrepreneurship through acquisition, or ETA.
The investment combines ownership in an operating company with the searcher’s ability to manage the transition, strengthen operations, and grow the business.
Traditional search funds raise capital in two stages. Search capital finances the work of finding and evaluating businesses. Acquisition equity helps fund the purchase once a company has been identified. Existing search investors commonly have contractual rights to participate in the acquisition; additional investors may join depending on the transaction.
Self-funded searchers generally finance their own search and arrange outside equity, where needed, after identifying a business. The search funding model can affect ownership, investor rights, and the searcher’s economics.
CapitalPad invests at the acquisition stage, after a business is under a letter of intent. CapitalPad does not finance the search phase.
Searchers typically acquire a business to operate it themselves. Independent sponsors generally lead the acquisition and oversee the investment while working with company management. Both can offer investors participation in a specific acquisition, but operating responsibilities, incentives, and governance differ.
CapitalPad evaluates the business and transaction alongside the experience, capabilities, and investment plan of the sponsor or searcher.
Search fund investors assess earnings quality, customer demand, acquisition price, leverage, and the incoming operator’s ability to lead the company. Value creation may involve professionalization, improved pricing, stronger sales processes, expansion, or complementary acquisitions.
Investment terms also matter. Preferred equity, liquidation preferences, searcher incentive equity, vesting, governance rights, and the distribution waterfall determine how ownership and proceeds are shared. These provisions vary by transaction.
Return measures commonly include internal rate of return (IRR), which reflects the timing of investment cash flows, and multiple of invested capital (MOIC), which compares distributions plus remaining investment value with invested capital. Targets should be evaluated alongside their assumptions and the risks of the business.
Accredited investors can invest through CapitalPad in select traditional and self-funded search deals, with individual investments generally starting at $25,000. Following onboarding, investors receive materials under NDA and evaluate each opportunity before requesting an allocation.
Investors participate through a transaction-specific special purpose vehicle (SPV) that holds a minority equity interest in the business. Each investment is a separate decision. Search fund opportunities are offered selectively, without a fixed schedule.
CapitalPad does not provide personalized investment, legal, tax, accounting, or financial advice. Information on this website and materials made available through CapitalPad are provided for informational purposes and should not be construed as a recommendation by CapitalPad or any affiliate to purchase or sell any security.
Nothing on this website constitutes an offer to sell, or a solicitation of an offer to buy, any security. Any offer or solicitation will be made only through the applicable offering documents, subscription agreement, and related materials, and only to qualified investors in jurisdictions where the offering is permitted. In the event of any conflict between website content and the applicable offering documents, the offering documents control.
CapitalPad may rely on information supplied by sponsors, issuers, management teams, service providers, and other third parties. Although CapitalPad reviews opportunities before presenting them to investors, CapitalPad does not guarantee the accuracy, completeness, or adequacy of any information, projections, valuations, diligence materials, or other materials provided in connection with any opportunity.
Private investments made through CapitalPad are speculative, illiquid, and involve a high degree of risk, including the possible loss of all invested capital. Securities may be unregistered, restricted, not listed on any exchange, and subject to transfer limitations. There may be no secondary market, and investors should be prepared to hold investments for an indefinite period. Investments are not FDIC insured, not bank guaranteed, and may lose value.
Past performance of any company, sponsor, individual, fund, strategy, or prior investment is not indicative of future results. Any projections, forecasts, target returns, forward-looking statements, or other estimates are based on assumptions that may prove incorrect, may not materialize, and should not be relied upon as a guarantee of future performance.
Investors are responsible for reviewing all deal materials and conducting their own independent diligence before making an investment decision. Investors should consult their own legal, tax, accounting, financial, and other advisers before investing.
Investments may involve limited or no voting rights, and investors should assume they will not control or influence the management or operations of any underlying company. CapitalPad and its affiliates may receive fees, carried interest, or other economic benefits and may have conflicts of interest, each of which will be disclosed in the applicable deal materials.
Nothing in these disclosures is intended to waive any rights or remedies that cannot be waived under applicable federal or state securities laws.
