Deal-by-Deal Private Equity for the Lower Middle Market

CapitalPad invests in acquisitions of established, profitable companies in the lower middle market, where valuations remain attractive and competition from traditional private equity is limited. Deal sizes typically range from $5M to $30M in enterprise value.

These acquisitions are led by acquisition entrepreneurs—typically independent sponsors, self-funded searchers, or search fund operators—who acquire and lead the businesses post-close. CapitalPad does not invest in startups, turnarounds, or venture-style bets.

Target companies share common characteristics: simple, “boring” business models with low cyclicality, non-discretionary demand, healthy margins, and preferably mission-critical products or services.

Common industries include:

• Home Services — HVAC, roofing, contracting
• Professional Services — Accounting firms, consultancies, B2B providers
• Consumer Services — Garment care, towing
• Healthcare Services — Home health, physical therapy clinics
• Light Manufacturing — Specialized, asset-light operations
• Digital Services — IT firms, agencies

CapitalPad allows accredited investors to co-invest alongside acquisition entrepreneurs purchasing established, historically profitable businesses.

By pooling capital from multiple investors, CapitalPad provides access to lower middle market deals that typically require institutional-level commitments, without needing to write a $1M+ check. The process is straightforward:

1. Apply for access — Complete a short onboarding process to verify your accredited investor status and suitability.
2. Review opportunities — Access the CapitalPad dashboard to evaluate vetted acquisitions as they become available.
3. Conduct diligence — Each deal includes a full data room with financials, tax returns, business overview, investor terms, and a recorded interview with the operator.
4. Invest — Choose whether to participate and indicate your investment amount. Minimum investment is $25,000 per deal for individual investors and $750K per deal for institutional partners.
5. Participate in ownership — Receive equity in the acquired company, with potential cash distributions during the hold period and capital gains upon exit.

CapitalPad handles deal sourcing, vetting, and investor administration so you can focus on selecting the right opportunities.

CapitalPad is only available to approved accredited investors, pending approval through our onboarding process.

Yes, CapitalPad is available for funds and family offices dedicated to the independent sponsor space (some restrictions apply).

You can choose to sign up as an institutional partner during onboarding.

Most investments are held for 3–7 years, though this varies by deal.

Investors may receive cash distributions during the hold period, but the majority of returns are typically realized upon exit. These are long-term, illiquid investments—by design. The extended hold period allows operators to focus on building value rather than optimizing for a quick sale.

CapitalPad charges investors a one-time 1.5% management fee at the time of investment to cover operational costs. There is no annual fee.

Beyond that, CapitalPad earns 20% of any profits on investments by individual investors, but only after investors have received their full initial capital back. Institutional partners invest on different terms. This structure keeps incentives aligned: CapitalPad only does well when investors do well.

There is no set cadence. CapitalPad only shares opportunities that meet our quality threshold, which means timing varies—sometimes a few weeks between deals, sometimes a few months. Investors should not expect a predictable schedule.

This selectivity is intentional: fewer, higher-quality opportunities rather than a constant stream of mediocre ones.

Private equity investments carry inherent risk, including the potential for total loss of capital. While CapitalPad focuses on established, profitable companies with durable business models, no investment is guaranteed. If a portfolio company underperforms, investors may receive reduced or no distributions. In the event of a total loss, invested capital is not recoverable. Investors should only allocate capital they can afford to hold long-term and, in a worst-case scenario, lose entirely.

CapitalPad does not provide personalized investment advice or recommendations to any individual investor. All information provided through this website, including details related to potential investment opportunities, is for informational purposes only and is not provided by CapitalPad.

Investors acknowledge and accept the inherent risks of investing in private securities, including the risk of 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, 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, and 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.