Submit a deal
Equity Capital for Independent Sponsors

Capital built
for the builder.

Etos Capital provides flexible equity to independent sponsors pursuing lower middle market acquisitions. We move decisively, partner genuinely, and win only when you do.

Submit Your Deal Our Approach
About

A different kind of
equity partner.

Etos Capital was built with a single focus: backing independent sponsors who are acquiring and building exceptional lower middle market businesses across America.

We understand the independent sponsor journey because we’ve lived it. That means we move with speed, offer genuine flexibility, and show up as real partners — not passive capital on a spreadsheet.

Whether you need gap equity to round out a cap stack or a single committed partner to anchor your raise, Etos is built to meet you where you are.

01
Sponsor-First Philosophy
We recognize that the independent sponsor creates the deal, drives the thesis, and leads the company. Our role is to be the capital partner that earns a seat at your table.
02
Committed Capital, Flexible Structure
No blind pool uncertainty. We deploy from committed capital and can participate as minority, co-lead, or sole equity — whatever the deal demands.
03
Speed & Certainty of Close
We’ve heard the horror stories of slow capital. We’ve built our process to move from introduction to term sheet in days, not months.
04
Long-Term Partnership Orientation
We invest in sponsors as much as businesses. Our goal is to be the equity partner you call on deal after deal, for years to come.
05
Deep Network Access
Tap into our curated network of operating partners, advisors, and co-investors — developed through years of lower middle market deal activity — to strengthen your cap stack and execution capabilities.
Why Etos

Independent sponsors deserve
better choices.

Speed & Certainty
We know that timing is everything in a competitive deal. Our team has the experience and mandate to move decisively — providing you and your seller with certainty of close from the moment we shake hands.
True Alignment
Our fee structure is straightforward and sponsor-friendly. No onerous terms, no management fees charged to you. We generate returns the same way you do — by building great businesses together.
Sponsor Attribution
You built the relationship, found the deal, and crafted the thesis. We ensure you receive full credit and attribution — protecting and enhancing your reputation with lenders, advisors, and future sellers.
Deal-by-Deal Flexibility
We invest deal-by-deal. No fund mandate or sector constraints forcing us into or out of opportunities that don’t make sense. Each deal is evaluated on its own merits.
Value Creation Support
Post-close, we can be as active or hands-off as you need. From board governance and financial reporting to strategic planning and add-on sourcing — we bring resources, not just capital.
Deep Network Access
Tap into our network of lenders, operating partners, advisors, and co-investors who have been vetted over years of deal activity in the lower middle market.
Investment Criteria

Where we invest.

What We Target

  • Proven operating businesses with long history
  • Experienced independent sponsor & strong management team
  • Recurring or repeatable business models
  • Niche market leadership or defensible competitive position
  • Clear value creation thesis — organic growth, add-on, or professionalization
  • Strong free cash flow characteristics

Preferred Sectors

  • Business & Professional Services
  • Industrial & Specialty Services
  • Healthcare Services
  • Tech-Enabled & Software Businesses
  • Value-Added Distribution
  • Specialty Manufacturing
$2M+
EBITDA Minimum
Up to $10M+
$10–50M
Enterprise Value
Platform acquisitions
$1–5M
Equity Investment
Minority to 100%
3–6×
Entry Multiple
Attractive entry valuation

What We Avoid

  • Highly cyclical or commodity-driven businesses
  • Businesses with High Customer concentration
  • Founder-dependent operations without a credible succession plan
  • Low-margin or undifferentiated models
  • Businesses requiring heavy, ongoing capital expenditures to sustain earnings
Our Process

From first call to
closed deal.

01
Initial Introduction
A direct conversation to understand you as an operator first — your track record, sourcing edge, and why this opportunity deserves capital.
02
Sponsor & Deal Screening
Rapid alignment check against our investment criteria, focusing on durability of cash flow, downside protection, and sponsor conviction. If aligned, we execute an NDA.
03
Diligence Package Review
Deep review of the CIM, financials, QoE, and management materials to assess earnings quality, risk exposure, and value-creation levers.
04
Independent Underwriting
We build our own model, pressure-test assumptions, and underwrite realistic downside cases — not headline projections.
05
Indication of Interest
Clear, sponsor-friendly indication outlining our equity commitment, structure, and alignment of economics.
06
Investment Decision & Firm Commitment
Disciplined internal approval process leading to a firm commitment and efficient issuance of a clean term sheet.
07
Close & Active Partnership
Structured, transparent closing process followed by engaged partnership to support governance, add-ons, and disciplined exit execution.
Portfolio

Representative investments.

Commercial Transportation
Transport Holdings
Regional commercial transportation services provider with a diversified customer base and long-standing operator relationships across Ontario.
$48.61M
Enterprise Value
4.9×
Entry Multiple
2026
Vintage
Interior Design & Home Furnishings
Recovery Partners
Substance use and behavioral health treatment platform serving patients across the Midwest with strong referral network and recurring census.
$19.0 M
Enterprise Value
4.0×
Entry Multiple
2026
Vintage
Drug & alcohol addiction treatment
FrameCraft Inc.
Custom frame distribution and manufacturing with national retail and institutional accounts, proprietary product lines, and a loyal repeat customer base.
$27.5 M
Enterprise Value
4.0×
Entry Multiple
2025
Vintage
Pipeline Design & Engineering
Pipeline Design Group
Specialized pipeline design and engineering firm serving energy and infrastructure clients in Texas with strong project backlog and recurring client base.
$15.0M
Enterprise Value
3.5×
Entry Multiple
2025
Vintage
Custom frame moulding distributor
Pacific Casting Co.
Precision aluminum casting manufacturer serving aerospace and defense OEMs with high-spec requirements, AS9100 certifications, and strong customer retention.
$12.4M
Enterprise Value
4.3×
Entry Multiple
2025
Vintage
More to come.
We are actively deploying and building our portfolio. If you have a deal that fits our criteria, we want to hear from you.
Submit a Deal →
Our Team

Partners who have
walked your path.

VR
Vin Rao
Founder & Managing Partner
Vin Rao, CFA, is the Founder and Managing Partner of SMB Value Investing Group (SMB VIG), a platform dedicated to private equity investments in high-quality businesses led by strong management teams.
He brings over 15 years of experience spanning public equity investing, mergers and acquisitions, and senior corporate finance leadership. Before founding SMB VIG, Vin held senior finance roles at Qualys, a global leader in cybersecurity, and previously served as Vice President at Morgan Stanley in the Semiconductors Group. He began his career as a Technology Equity Analyst at Strategic Investment Advisors.
Vin earned his MBA from Duke University’s Fuqua School of Business, holds a Bachelor of Engineering from Delhi College of Engineering, and is a CFA charterholder.
Contact

Let’s talk
about your
next deal.

We welcome conversations with independent sponsors at any stage — from early-stage sourcing to LOI and beyond. Reach out and let’s explore how Etos can help you get your deal done.

  • vr@etoscapital.com
  • 28 Geary St Ste 650-1885 San Francisco, CA 94108

© 2026 Etos Capital LLC. All rights reserved.