Doug Lapisto, co-founder of Sleeping Giant Capital, dives into the exciting world of local business acquisitions. He shares insights on backing seven searchers to close deals worth $34 million, focusing on operator-first strategies. The conversation covers sourcing regional deals, building resilient companies with university talent, and navigating the emotional complexities of acquisitions. Doug emphasizes the unique investment model influenced by industry greats and discusses the importance of fostering community impact while achieving investor returns.
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insights INSIGHT
Hybrid Model: Buffett + Search + University
Sleeping Giant mixes Buffett-style long-term holding with search-fund operator incentives and university resources.
That combo creates a place-based PE engine focused on durable, local ownership and talent pipelines.
volunteer_activism ADVICE
Start Fundraising With Local Long-Term Investors
Expect institutional investors to say no to first-time, place-based funds and use their feedback to sharpen your pitch.
Target high-net-worth individuals and family offices who can take a long-term, regional view.
insights INSIGHT
Bigger Deals Beat Lots Of Small Ones
Sleeping Giant shifted target deals up to $3–$5M EBITDA because higher-quality businesses reduce volatility and PE competition matters.
One larger, superior deal is often simpler than many small transactions.
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Co-invest in curated SMB acquisitions led by proven searchers and independent sponsors. Get a full deal room with financials, tax returns, sponsor profiles, and value-creation plans.
No management fees; CapitalPad participates only after investors get their capital back and profits are earned. Operators under LOI can also use CapitalPad to fill equity gaps with a trusted co-investor network. These are long-term, illiquid investments and involve risk.
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Operator-first, place-based PE done right. In this episode, Doug Lepisto (co-founder of Sleeping Giant Capital) breaks down how his team backed 7 searchers to buy 7 local companies, deploying a $34M Fund I and gearing up for Fund II.
We unpack the full playbook—how they source in-region deals, why they bet on the operator first, and the exact 10-10-10 searcher economics.
Doug shares how they structure boards, protect the downside, and build long-term, hold-forever companies with a university-powered talent pipeline.
Timestamps: 00:00 Intro (Sleeping Giant overview: place-based, West MI, Fund I $34M) 00:33 Doug’s background 04:41 Sleeping Giant timeline 06:18 Sponsor (CapitalPad.com) 10:32 Buffett, Brent Beshore, ETA/search, university model 13:42 Fundraising journey (easiest no, institutions vs HNW/FOs, strategy) 16:13 Ideal targets (shift to higher-quality $3 to $5M EBITDA businesses) 18:14 First acquisition setup 18:20 Sponsor (SpacebarStudios.co) 19:29 First acquisition story 21:41 Deal size (larger than initial target) 22:05 Seller rollover & post-close roles (case by case) 23:14 Operating lessons (protect downside, boards, emotions; big deal are better than many small) 26:25 Pipeline & selectivity (LOIs as the key KPI) 28:48 Operators-first vs deal-first (why back people) 30:32 The 8-week Acquire Course (1:1 coaching format) 34:56 Course throughput & outcomes 35:57 Searcher economics (10/10/10 vesting, salary/bonus) 37:58 Portfolio update & headwinds (tariffs, organic growth systems, board design) 40:27 Fund II focus (double down on place, build an enduring machine) 42:10 Defining long-term (25-year term, durable niches like metal components) 43:38 Liquidity in a long fund 46:04 Scalability (2–3 CEOs at a time; replication in other regions) 47:29 Place-based investing philosophy & macro trends 50:51 Quickfire (best advice and favorite book)
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