CapitalPad Dedicated | January 18th

GOOD MORNING

Hey Moby Readers,

Have you been following the rise of the “boring businesses”?

Legacy small businesses that focus more on profits and less on venture rounds. We know how profitable some of these companies can be. But, it’s been nearly impossible for passive investors to access this asset class. That’s why we’re thrilled to introduce you to CapitalPad, a platform that’s redefining how accredited investors access M&A deals in small and medium-sized businesses (SMBs).

CapitalPad opens up the hard-to-access search fund and SMB investing space. It offers curated deals in profit-focused small business acquisitions. No startups, no guesswork, just dependable private businesses that are more concerned with cash-flow and longevity over rocketship growth. Whether it’s an HVAC company, dry cleaner, or light manufacturing firm, CapitalPad connects accredited investors to SMB opportunities that have the potential for steady cash flow and significant upside.

CapitalPad connects accredited investors with deal sponsors (called searchers) who acquire historically profitable small businesses. The sponsors acquire a company, run it, and attempt to expand profits over time. Sponsors partner with investors to help fund the purchase. In return, investors become preferred shareholders, eligible for any ongoing profit distributions.

Why Moby Loves CapitalPad:

• All-in-One Dashboard

  Gain exclusive access to established SMBs in high-demand sectors focused on profitability. CapitalPad does the heavy lifting so you can focus on selecting the right deals for you.

• Streamlined Investment Process

  CapitalPad handles deal sourcing, aggregating due diligence materials, datarooms, logistics, and even groups investors into a single entity per deal. All you need to do is review the deal room materials and request your allocation.

• Attractive Potential Returns

  The 2024 Stanford Search Fund Study found that aggregate search fund deals had an IRR of over 35%. SMB deals can offer a compelling alternative to traditional investment vehicles like public stocks or REITs. Equity participation, potential cash distributions and potential capital gains – all from SMBs that have been profitable for decades.

• Low Barriers to Entry

  With a minimum investment of just $10,000, CapitalPad makes SMB investing accessible to more accredited investors than ever before. No need for operational expertise or high capital requirements.

• Downsides

  There is never a free lunch with investing. The downsides are that the platform only accepts accredited investors, the investments are illiquid, can take years to realize returns, and deals can still fail. Diversification and a long timeline is a must.

Why We Trust CapitalPad:

For investors:

CapitalPad’s “deal rooms” are packed with the information you need to make your own informed decisions: financials, sponsor bios, deal terms, interviews, and more. Plus, they charge a transparent fee structure – a 20% carry fee on profits and they pass-through the small one-time SPV costs – so you know exactly what to expect.

For Sponsors:

If you’re an ETA entrepreneur looking to raise capital for SMB acquisitions, CapitalPad streamlines fundraising and deal-closing, connecting you with a network of engaged investors.

CapitalPad is bridging the gap between investors and the SMB world, unlocking opportunities that were previously out of reach. Ready to take the next step in your investment journey?