Our Approach

Put simply, we partner high quality businesses and management teams, to deliver transformational growth.

With one of the largest investment and specialist research teams in our market,
we have the expertise and resources to help each business deliver the growth
strategy that's right for them.

OUR INVESTMENT FOCUS

We partner business with the following key features:

  • a differentiated market positioning
  • potential for expansion in the UK or internationally
  • operating in the service-based sectors of:

Investment Focus Diagram

OUR BUY & BUILD STRATEGY

We help deliver successful growth through:

  • 'Buy'

    Strategic acquisition rapidly accelerates a company’s growth. By adding new geographies, clients and expanding the service offering, businesses can rapidly scale and consolidate market share. Sovereign have partnered over 50 businesses to deliver more than 250 follow-on Buy & Build transactions.

  • 'Build'

    We support intensive organic growth. This enables businesses to rapidly roll-out new sites; invest in systems, technology and infrastructure; optimise their sales & marketing; recruit key talent and a whole lot more. We back businesses where we believe our expertise, network and active partnership can significantly enhance their opportunities.

Our Partnership In Action

LINNAEUS GROUP

Strategy

To build a market leading high-quality veterinary group through organic growth and strategic acquisition.

Result

Our origination and investment team worked with management to identify and acquire 21 veterinary businesses, expanding Linnaeus’ service offering and geographic reach. At the end of Sovereign's investment in June 2018, the Group had 5 referral hospitals, over 82 first-opinion practices, more than 1400 staff and was recognised as one of the largest and most highly regarded small animal specialist veterinary operators in the UK.

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21 Acquisitions

Our expansion has been pacey but exciting. It’s not just that Sovereign supported our M&A activity, their commitment to investing in the best, and focusing on what really matters, was fantastic.

Lynne Hill CEO / Linnaeus Group

KINDERTONS

Strategy

To consolidate the UK credit hire market through a best in class operator via organic growth and acquisition.

Result

With Sovereign's backing, Kindertons scaled substantially, successfully professionalising its sales team and approach to winning larger contracts, developed its branding and market positioning, and completed four strategic acquisitions to consolidate its position in niche markets.

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c.30% p.a. in volumes, revenues & profit

We achieved fantastic organic growth and made several strategic acquisitions with Sovereign's partnership. We operate in a competitive market and were able to invest in the systems and operations to keep us at the forefront.

Neil Cunningham CEO / Kindertons Group

CYGNIA

Strategy

To transform a high-growth family business into an efficient, systemised and scalable UK niche market leader.

Result

The company was already highly successful, but there was room for its business operations to improve, which would enable the business to scale for further growth. Through the use of technology, process and management expertise we worked with the management team to develop a business which now has market-leading operating margins.

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We’ve deployed technology to improve operational efficiency. This has been an important factor in simplifying our processes and enabling a responsive approach. What we do isn’t complex in itself, but doing it on the scale that we do - in an environment of constant change - means we have to be efficient.

CORDIUM

Strategy

Recognising that the compliance & regulatory consulting market was fragmented and increasingly regulated, Sovereign partnered management to scale a UK business into an international operator offering a global service.

Result

During the four years of Sovereign’s investment Cordium made eight acquisitions identified by Sovereign’s in-house origination team; opened its first office in Asia; broadened its service offering, and developed innovative web-based solutions. Cordium transformed from being a London based business to become one of the world’s largest independent compliance and regulatory consultancies.

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4 new overseas locations

Sovereign was a highly supportive investment partner that enabled the Group’s structured expansion strategy of acquiring specialist companies globally while simultaneously investing in organic growth.

Michel Van Leeuwen Former Group CEO / Cordium

ARACHAS

Strategy

To connect with high-quality senior management in the insurance services market to both deepen our knowledge of the sector and enable us to help develop a management team, at the time of investment, if required.

Result

We built a relationship with Gareth Brady, a seasoned UK insurance services CEO who had successfully led the growth and sale of three separate businesses in the sector. When we identified Arachas Corporate Brokers, Gareth worked closely with us as we got to know the business, management team and their aspirations for Arachas. In 2017, Sovereign backed the MBO of Arachas and Gareth was appointed as Chairman.

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This is a wonderful opportunity to work with a first class business and management team. Since Sovereign's initial investment, Arachas has made two acquisitions and is now the leading independent insurance brokerage operating in Ireland.

Gareth Brady Chairman