Sovereign's Capital

Sovereign’s Capital provides capital and strategic partnership to values-driven, market-leading companies and funds with potential for outsized returns for all stakeholders. The firm currently has four main practice areas. First, they invest directly in profitable, lower-middle market companies with $10 million to $100 million in revenue, and $3 million to $20 million in owner’s earnings. Second, they invest directly in promising, early-stage technology companies across Seed and Series A stages. Third, they invest in publicly traded companies. Finally, they use a fund of funds strategy to invest in venture and private equity fund managers through primaries, secondaries, co-investments, and GP stakes.

Sovereign's Capital was founded by Henry Kaestner and Luke Roush – two Christians who recognized the need for more support for faith-driven businesses in the venture capital community. For the first ten years or so, the firm focused on early-stage venture investing and lower-middle market private equity in mostly blue-collar industries. Their faith-based approach was a huge hit among the many people in this market who wanted to partner with a private equity firm or a capital source who they felt shared their values.

This early success led Henry and Luke to begin thinking about expanding into a broader array of asset classes so they could help even more like-minded entrepreneurs, owners, and operators. They knew as they expanded that they needed to find a larger administrator with cutting-edge technology to help manage the complexity of these new funds and offer investors a top-tier experience.

The team at Sovereign’s Capital was open to multiple models, but it was important for them to find a provider that had an integrated, comprehensive approach to administration. “Whenever the platform is too fragmented,” said Managing Partner John Coleman, “there's always the chance that you end up having to deal with multiple groups and various points of contact.”

“There was a wealth management firm that we're partnered with that had gotten to know Juniper Square,” John continued. “They knew we were looking for a way to upgrade our tech stack effectively, as well as find a new fund administrator. They said, ‘You should take a look at these folks, we’ve heard great things.’”

Sovereign’s Capital engaged Juniper Square and quickly began to realize the benefits of having a specialized solution that could help them manage tasks like reporting, fund administration, and investor subscriptions. “These are things we know we’re not going to be the best at, so we can’t develop our own internal process,” said John. “[Juniper Square] brings three key benefits, from my perspective. One is more time with our team, so that we can hire, retain, and develop the best talent in the industry. Two is more time to spend sourcing and executing great investments. The third is that we have more time to develop our long-term LP relationships.”

Thanks to all that extra time to focus on what they do best, Sovereign’s Capital has experienced impressive growth in the past year. “We have a fund of funds now, supporting other managers like us,” said John. “We have a public equities fund, investing in publicly traded companies. We have private equity and direct venture, and we’re incubating an international impact investing capability, where we can invest overseas in places like Africa or Eastern Europe, in a way that prioritizes impact over financial return.”

Sovereign’s Capital is grateful for the contributions and professionalism of Juniper Square, acknowledging the importance of having reliable business partnerships. “Our business is based on trust and so is our relationship with Juniper Square. I have very high confidence in the Juniper Square team because of the many small but meaningful interactions I've had with them. For example, somebody just emailed me a couple days ago on the fund admin team and said, ‘Hey, I noticed these charges in your bank account. Can you confirm that these are all interest charges for your line of credit? Is there anything here that you don't recognize?’ Just knowing that they're paying such close attention lets me know we made the right choice.”