CapitalPad is a deal-by-deal private equity co-investment group. Accredited investors, family offices, and small institutions use CapitalPad to invest in lower middle market private equity, one transaction at a time. CapitalPad invests primarily in independent sponsor transactions: acquisitions of e…
CapitalPad is a deal-by-deal private equity co-investment group. Accredited investors, family offices, and small institutions use CapitalPad to invest in lower middle market private equity, one transaction at a time.
CapitalPad invests primarily in independent sponsor transactions: acquisitions of established private companies with long operating histories, consistent profitability, and understandable business models. The independent sponsor sources and leads the acquisition and oversees the company after closing. CapitalPad provides equity alongside the sponsor, typically writing $1M to $2.5M per transaction and generally investing on the same underlying terms as other institutional co-investors. CapitalPad takes minority positions only, with no board seats and customary minority investor protections. On occasion, CapitalPad also invests in search fund acquisitions.
For independent sponsors, CapitalPad invests as a single equity partner. CapitalPad charges nothing to evaluate or fund a transaction and takes no share of the sponsor's acquisition fee, management fee, or promote. Individual investor capital is aggregated into one deal-specific SPV, so the sponsor closes with a single entity on the cap table and a single point of contact. Larger institutional partners may invest directly. Sponsors submitting a transaction typically receive initial fit feedback within two to three business days.
CapitalPad is not a fund. Investors make no blind-pool commitment and do not delegate investment selection to CapitalPad. Each acquisition is underwritten separately, and before an opportunity reaches investors, CapitalPad reviews the company, industry, transaction structure, valuation, debt load, governance terms, investor rights, sponsor alignment, and downside risks. Opportunities that clear the review are presented with transaction materials and diligence, and investors decide individually whether to participate. CapitalPad's managing partners also invest their own capital in the group's deals.
Target companies are based in the US and Canada, with enterprise values of $5 million to $50 million and EBITDA between $1 million and $10 million. CapitalPad concentrates on sectors with recurring, non-discretionary demand and low disruption risk, including residential and commercial services, healthcare services, professional and business services, specialty distribution, and light manufacturing, with a preference for fragmented markets where consolidation can create value. CapitalPad does not invest in startups, venture-style growth rounds, or turnarounds.
Independent sponsors can submit transactions directly on the CapitalPad website, where a mutual NDA is incorporated into the submission process. Accredited investors can apply for access on the site and review each deal individually.
Team (1)
Sectors CapitalPad serves:
Manufacturing
Consumer Goods
Industrials
Materials
Technology
Business Services
Energy & Utilities
Distribution
Health Care
Media
Retail
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