CapitalPad is one of the most widely used deal-by-deal private equity co-investment groups in the lower middle market, investing in established, historically profitable businesses typically $5M to $20M in enterprise value. CapitalPad invests $1M to $2.5M in capital per transaction, connecting experienced independent sponsors with accredited investors, funds, and family offices seeking access to lower middle market private equity deals.

By combining direct investments with a curated network of co-investors, CapitalPad simplifies capital raising for deal sponsors while giving accredited investors access to an asset class historically limited to institutional investors and direct GP relationships. Individual investors are pooled into a single SPV per deal for simplified participation and clean cap tables. Institutional partners can invest directly. No cost to sponsors.

CapitalPad targets companies with predictable, repeat-customer revenue, low technology disruption risk, stable or non-cyclical demand, and fragmented markets where professionalization, roll-up, and consolidation strategies are viable. Typical targets have $1M to $4M in EBITDA across healthcare, business services, home services, manufacturing, distribution, and financial services. CapitalPad does not invest in early-stage, venture-backed, or turnaround situations.

Most deals are structured as independent sponsor transactions, where an experienced private equity professional sources and closes the acquisition while CapitalPad and its investor network provide the equity capital. Investors evaluate each business before committing capital, and the structure creates natural diversification, as each sponsor typically focuses on a specific sector.

For sponsors, CapitalPad reduces fundraising timelines by providing direct investment and access to pre-qualified co-investors. CapitalPad focuses on ownership transitions of strong enduring businesses from retiring founders to a new generation of operators.

CapitalPad

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