CapitalPad for Investors
Build a passive portfolio of cash-flow-focused, owner-operated small businesses, one deal at a time.
CapitalPad is for accredited investors looking to gain passive exposure to small business acquisitions in the US lower middle market.
We partner with acquisition entrepreneurs, including search fund operators, self-funded searchers, and independent sponsors, who are buying established, profitable SMBs. Deals are heavily filtered before reaching our investor network.
We evaluate hundreds of SMB acquisition opportunities each year. Only deals that meet our strict financial and operational criteria make it to our investor network.
SMB acquisitions focus on established companies with real revenue, real profits, and real operating histories. These are not startups or speculative bets.
Quality SMB deal flow is fragmented and difficult to access for non-institutional investors. CapitalPad aggregates opportunities from across the acquisition entrepreneur ecosystem and delivers them to you curated, structured, and ready to review.
CapitalPad invest exclusively in SMB and lower-middle market acquisitions. You get a capital partner who understands SMB deal dynamics and can commit quickly when your transaction is ready.
Individual investors are consolidated into a single entity. One line on your cap table, one wire at closing, and no managing dozens of investor relationships.
CapitalPad is one of the most active SMB investors in the United States. Our team brings decades of experience in private equity and small business operations. We stay involved after closing to help you grow and build for the long term.
For Acquisition Entrepreneurs
“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 was purpose-built for small business acquisitions. Our team has spent years in private equity, SMB operations, and entrepreneurship through acquisition. That experience informs every deal we evaluate and every entrepreneur we back.
Gain exposure to SMB acquisitions led by driven entrepreneurs buying profitable small businesses. Evaluate each opportunity individually and invest with full visibility into the company, the operator, and the deal terms.
Raise acquisition capital from a team that specializes in SMB deals. CapitalPad invests directly, consolidates your investor base into a single SPV, and helps you close without unnecessary friction.
CapitalPad was built to solve a problem we experienced firsthand: investing in quality small businesses was harder than it should be. Deal flow was scattered, diligence was inconsistent, and there was no simple way for individual investors to participate in SMB acquisitions.
So we built the platform we wished existed.
Along the way, we found that acquisition entrepreneurs faced their own version of the same problem. Raising capital for an SMB deal meant juggling fragmented investor outreach, messy cap tables, and distractions that took focus away from closing the transaction.
Today, CapitalPad serves both sides. Investors get a curated pipeline of vetted SMB deals. Acquisition entrepreneurs get a faster raise and a cleaner path to closing. We built it for both because both sides benefit when the process works.
CapitalPad is open exclusively to approved accredited investors. All investors must complete our onboarding and verification process before accessing SMB investment opportunities.
$25,000 per deal for individual accredited investors.
Once approved, you access the CapitalPad dashboard. Each posted deal includes a comprehensive diligence package: deal memo, business overview, financials, tax returns, investor model, sources and uses, value creation plan, and a recorded interview with the acquisition entrepreneur.
You review the materials and decide whether to participate. If you choose to invest, you indicate your allocation in the dashboard. When the deal approaches closing, we call capital and issue subscription documents for you to sign.
SMB investments are long-term and illiquid. You may receive cash distributions during the hold period, but most returns are realized when the business is eventually sold.
This illiquidity is intentional. It allows operators to focus on building value over time rather than optimizing for short-term results.
CapitalPad is one of the most active SMB investors in the United States. We charge a one-time 1.5% management fee at the time of investment to cover operational costs. There is no annual fee.
Beyond that, we earn 20% of profits, but only after investors have received their full initial capital back. Our incentives are aligned with yours.
SMB investing refers to investing in the acquisition of small and medium-sized businesses, typically companies with $1M to $5M in EBITDA. These are established, profitable companies with real operating histories, not startups or venture-style bets.
CapitalPad focuses on SMB acquisitions led by acquisition entrepreneurs, including search fund operators, self-funded searchers, and independent sponsors. These entrepreneurs identify, acquire, and operate small businesses, and investors participate by providing acquisition capital alongside them.
SMB Investing vs Venture Capital
Unlike venture capital, which backs early-stage companies with unproven business models, SMB investing focuses on established businesses with existing cash flow and profitability. The risk profile is different: SMB acquisitions target stable, “boring” businesses with predictable revenue rather than high-growth, high-risk startups.
SMB Investing vs Traditional Private Equity
Traditional private equity firms typically pursue larger transactions, often $10M+ EBITDA, and manage committed funds with institutional capital. SMB investing through CapitalPad focuses on smaller deals in the lower middle market, generally at significantly lower entry multiples, allowing accredited investors to participate on a deal-by-deal basis with lower minimums and full transparency into each opportunity.
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.
We back acquisition entrepreneurs purchasing established, profitable small businesses, typically with $750k to $4M in EBITDA. You will need an executed LOI, a clear path to close, and demonstrated ability to operate the business.
We favor companies with stable revenue, low customer concentration, and limited exposure to technological disruption. Our focus is on US-based businesses.
No. Acquisition entrepreneurs pay nothing to raise capital through CapitalPad. Our economics come entirely from the investor side, and we only earn carried interest if the deal performs. Your success drives ours.
We can typically provide initial feedback within a few days and formally commit capital in two to three weeks when timing is tight.
More lead time generally allows for a larger commitment. If your timeline permits, 30+ days is ideal.
We are sector-agnostic but favor stable, cash-flowing businesses with durable demand. Common sectors include business services, healthcare services, home services, professional services, and light manufacturing.
We avoid early-stage companies, turnaround situations, and industries with high disruption risk. Our focus is SMB acquisitions of US-based companies.
That depends on you. Some acquisition entrepreneurs want an active partner to help with hiring, operations, or strategic decisions. Others prefer a passive investor who lets them run the business independently.
We are comfortable either way. What we always bring is a team that has been through dozens of SMB acquisitions and understands the challenges ahead.