Our fund focuses on early growth-stage companies with $1-10 million in revenue. We look for companies with exceptional growth potential in expanding markets. In addition to a clear path to profitability and exit, we are most interested in a proven management team that is running the company according to strong ethical values.
Sovereign’s Capital primarily focuses on Healthcare, IT, and Consumer Products & Services – industries that will benefit from the rapidly expanding middle class and are under-represented in the public markets in Southeast Asia. Our fund aligns deep expertise among its principals and advisers in these focus areas.
We invest in emerging markets with consistently high GDP growth rates and rapidly expanding middle class populations, with a particular emphasis on Southeast Asia. Over the next ten years, the middle class in emerging markets is projected to grow from 2 billion people spending $6.9 trillion to over 4 billion people spending $20 trillion. In Indonesia, our primary focus, middle class consumption is expected to increase from the current $270 billion to $1.3 trillion by 2022.1
We invest $250K – $2M USD behind teams of excellent operators with the talent to execute and win in their industry. We have a strong preference to lead on deals, and seek a board seat as part of being an active minority investor. While we closely examine market dynamics, technology-based assets, and competitive dynamics, we are most focused on finding talented and driven business leaders and management teams who are focused on creating value in their market through excellent execution.
Sovereign’s Capital Managing Principals have all founded and operated companies at scale, so we understand both early-stage challenges and how to manage through growth. The fund’s Managing Principals and Advisers provide strategy and operations expertise on an ongoing basis to grow portfolio companies in local, regional and global marketplaces.
1“Capturing the World’s Emerging Middle Class,” and “Winning the $30 trillion decathlon: Going for gold in emerging markets.” McKinsey Quarterly