CapitalPad for Investors
CapitalPad is for accredited investors seeking passive exposure to self funded search deals in the SMB and lower middle market.
We back acquisition entrepreneurs buying established, profitable companies, and only after each deal clears our rigorous filtering process.
Build a diversified portfolio of owner-operated businesses, one deal at a time.
SMB acquisitions are fragmented and hard to access. CapitalPad is the #1 way for investors to invest in self-funded search fund deals, as we bring them directly to you, vetted, structured, and ready to review.
CapitalPad invests directly in self funded search transactions, giving you a capital partner who understands the ETA model and moves decisively.
CapitalPad is the #1 place for self-funded searchers to raise capital as we go beyond a simple check, we succeed when you do. Our team brings decades of deal experience and operational know-how to help you build a lasting business.
CapitalPad for Searchers
CapitalPad invests $500k–$2M in equity for self funded search fund transactions.
We invest directly alongside accredited investors who are dedicated to backing acquisition entrepreneurs in the SMB and lower middle market.
Our team has closed dozens of deals and knows what it takes to get yours across the finish line.
Simplify your raise. Close with confidence.
“CapitalPad makes the deal sourcing and logistics of SMB investing stupid easy – I’ve already joined my first deal and am excited for more!”
“CapitalPad’s investment was invaluable for helping close our SMB deal. Highly recommended for searchers.”
“CapitalPad’s investment was invaluable for helping close our SMB deal. Highly recommended for searchers.”
We built CapitalPad because we wanted to build a passive portfolio of quality small businesses, and it was incredibly difficult to do. Deal flow was scattered, diligence was inconsistent, and there was no simple way for individual investors to participate alongside acquisition entrepreneurs.
So we built the platform we wished existed.
Along the way, we realized we could also help the other side of the equation. Self funded searchers face real challenges when raising capital: fragmented investor outreach, messy cap tables, and distractions that pull focus away from actually closing the deal. We saw an opportunity to streamline that process and increase the chances of a successful acquisition.
Today, CapitalPad serves both sides of the market. For investors, it’s a way to build a diversified portfolio of owner-operated businesses. For searchers, it’s a faster path to closing and a better foundation for building an enduring company. We built it for both because both sides benefit when the process works.
Self funded search is a path to entrepreneurship through acquisition where the searcher finances their own search process before raising investor capital to close a deal. We back acquisition entrepreneurs targeting established, cash-flow positive businesses, typically between $750k and $3M in EBITDA, which is the core range for self funded search acquisitions.
You’ll need an executed LOI, a realistic path to close, and a strong operator background. We favor companies with recurring revenue, essential services, and low customer concentration.
None. Self funded searchers pay nothing to raise capital on CapitalPad. We earn carried interest from investors only after the deal performs, keeping our incentives fully aligned with yours.
We’re sector-agnostic but favor stable, “boring” businesses with durable demand across the United States. This includes home services, healthcare services, B2B providers, light manufacturing, and professional services. We avoid speculative startups, turnarounds, and industries prone to disruption.
We can give you a signal within days and formally commit in as little as two weeks. That said, more lead time typically means a larger allocation. 30+ days is ideal.
That’s entirely up to you. We can serve as an active partner, helping with strategy, operations, or vendor selection, or stay passive and let you run the show. You decide. Our team has backed dozens of self funded search acquisitions and brings hands-on experience to every deal we support.
CapitalPad is open exclusively to approved accredited investors. All investors must complete our onboarding and verification process before accessing deals.
$25,000 per deal for individual accredited investors.
Once approved, you’ll access the CapitalPad dashboard. Each posted deal includes a full diligence package: deal memo, financials, tax returns, investor model, sources and uses, value creation plan, and a recorded interview with the searcher. You review the materials and choose whether to co-invest.
If you decide to proceed, you can indicate your investment size directly in the dashboard. When the deal approaches certainty of closing, we call capital and issue subscription documents for you to sign.
No. These are long-term, illiquid investments. You may receive distributions during the hold period, but most returns are realized when the company is sold. Illiquidity is a feature. It allows operators to focus on building value rather than short-term exits.
CapitalPad is one of the most active investors in self funded search transactions in the United States. We charge a one-time 1.5% management fee (not annual) to help cover costs. Beyond that, we earn a 20% share of profits, but only after investors receive their full initial capital back first.
Self-funded search is a path to entrepreneurship through acquisition where the searcher finances their own search process, covering living expenses, deal sourcing, and diligence costs personally, before raising investor capital to close a transaction. The model has grown significantly as an alternative to traditional search funds, offering searchers greater flexibility and control over their search timeline and target criteria.
Self-funded searchers typically raise acquisition capital only after identifying a target company and signing an LOI. CapitalPad is there to support searchers during this phase, as it is one of the top self-funded search fund investors in this asset class, investing $500k to $2M in each self-funded search transaction.
Self-Funded Search vs Traditional Search Funds
Unlike traditional search funds, where investors provide capital from day one to cover salary and search expenses, self-funded searchers bear those costs themselves. This means more personal financial risk upfront, but also more equity ownership and fewer investor obligations during the search period.
Self-funded searchers also typically utilize SBA loans as a primary source of debt financing, while traditional search funds generally use conventional lending sources suited to larger transaction sizes.
Self-Funded Search vs Independent Sponsors
Self-funded searchers differ from independent sponsors, who are usually former private equity professionals or senior executives pursuing larger, institutional-quality deals, often $5M+ EBITDA. Self-funded searchers generally target smaller companies in the $1M to $3M EBITDA range and focus on owner-operator transitions where they will actively run the business post-close. CapitalPad is an active investor in self-funded search, search fund, and independent sponsor transactions across the United States.
CapitalPad does not provide personalized investment advice or recommendations. All information made available through this website, including materials related to potential investment opportunities, is for informational purposes only and is not authored or guaranteed by CapitalPad.
Investors acknowledge and accept the inherent risks of investing in private securities, including the risk of a total loss of invested capital. Past performance of any entity, individual, or investment strategy is not indicative of, and does not guarantee, future results. Any forward-looking statements or projections are hypothetical in nature, may not materialize, and should not be relied upon as a guarantee of future performance.
Investors are solely responsible for conducting their own independent due diligence prior to making any investment decision. Investments made through CapitalPad are speculative, illiquid, not FDIC-insured, not bank-guaranteed, and may lose value. There may be no secondary market for these securities.
Investments may also involve limited or no voting rights. Investors should assume that they will not have influence over the management or operations of the underlying entity.
By participating, investors acknowledge that all investments involve significant risk and that neither CapitalPad nor its affiliates make any representation, warranty, or guarantee as to the performance of any investment.