Capstone Partners Investment Criteria Survey
Investment Criteria Survey · Draft
INVESTMENT CRITERIA SURVEY. Progress is saved so you can close and come back.

Your email address

Head of BD / origination or other primary contact to include on deal outreach?

Fund structure (check all)

Source of capital (check all)

Current fund

Provide responses across all funds combined.

Geographic focus (check all)

Deal focus

Majority deal types (check all)

Debt / Structured deal types (check all)

Which borrowers do you lend to? (check all)

Deal size

LTM Revenue range (for new investments)

LTM EBITDA range (for new investments)

Minimum organic LTM revenue growth

Minimum EBITDA margin

Sector focus (leave blank if not interested in the sector)

Preferred subsectors (leave blank if not interested in the subsector)

Do you have different requirements for software opportunities? And what do you view as “A” quality? Grey figures are your answers for the firm. Type over any that differ for software.

Check size and enterprise value

ARR range

LTM EBITDA range

Growth and margin minimums

Source of new platform investments

Minority: Uses of capital (check all)

End markets

Preferred source of growth

How does each component affect your interest in a software business?

Retention rate priority (click in order of importance)

Additional hurdles

What is interest level for the following business profiles, assuming your “A” quality metrics?

How much value does a new AI capability add?

A company’s AI revenue is growing fast with little or no gross margin after AI costs. How does that affect your valuation?

For a business fitting your core focus with

  • System of Record, AI features added
  • 30% organic LTM ARR growth / 20% EBITDA margin (Rule of 50)
  • Other metrics hit your “A” quality targets

What multiple would you apply at each level? Enter ARR or EBITDA multiple and the other calculates.

What is your ideal split of growth and profitability at each “Rule of” level? (EBITDA margin can be negative)

For a business fitting your core focus with

  • System of Record, AI features added
  • $20M ARR
  • Other metrics hit your “A” quality targets

What multiple would you apply at each level? Enter ARR or EBITDA multiple and the other calculates.

Same financial profile in every row, only the product changes.

  • $20M ARR
  • 30% organic LTM ARR growth / 20% EBITDA margin (Rule of 50)
  • Other metrics hit your “A” quality targets

What multiple would you apply to each?

How much third-party debt could each company raise today, assuming a System of Record with some AI features added?

Enter as Dollars, ARR multiple or EBITDA multiple, the others will calculate (enter 0 if lenders would not fund it)

How do you view current lender appetite for lower middle market software relative to historic norms?

How do you view current lender appetite for middle market software relative to historic norms?

Thank you, firm overview completed and recorded.
Optional follow-up Software Survey
Under 10 minutes to ensure you see all relevant software deals. Also, optional participation in our benchmark report (not published online), with all responses anonymized and shared only with Capstone PE participants, prospects and advisory partners. Sample from last year’s report below.
Sample charts

How do you view current multiples for lower middle market software relative to historic norms?

How do you view current multiples for middle market software relative to historic norms?

Benchmarking opt-in (94% of respondents opted in last round)

Do you use 3rd parties for any of the following? (check all)

Will you be fundraising within the next 24 months?

Any plans for a continuation vehicle over the next 12–18 months?

Thank you.

Your answers help our bankers bring you the opportunities you actually want to see.