Question 1

Who can invest with Sovereignty?

Accepted Answer

Our offerings are available exclusively to accredited investors as defined under Rule 501(a) of Regulation D, including individuals, family offices, and institutions. Offerings are conducted under Rule 506(c), so accredited status is confirmed through third-party verification.

Question 2

What is the current fund?

Accepted Answer

The Sovereignty Special Opportunities GP Industrial Flex Office Fund targets a $10M raise and focuses on industrial flex office and mission-critical small-bay suites across the Austin metro and high-growth secondary markets, with roughly 75% of committed capital allocated to industrial flex office.

Question 3

What is the minimum investment?

Accepted Answer

Minimums vary by offering. Request access for current terms. The site currently references a $100,000 minimum.

Question 4

What returns do you target?

Accepted Answer

The current offering targets a ~25% levered IRR (Class A) and a 1.50x equity multiple, with an 8% preferred return compounded annually. At the fund level we target ~2.48x; individual deals target ~1.9x–4.3x. These are projections, not guarantees, and actual results may differ materially.

Question 5

How long is capital committed?

Accepted Answer

The projected fund period is 5 years, with three one-year extension options, and a 2-year equity draw period. Private real estate is illiquid; you should be prepared to hold for the full term.

Question 6

How much leverage do you use?

Accepted Answer

We target approximately 75% loan-to-cost and stress-test every deal against material rate moves.

Question 7

What are the fees?

Accepted Answer

Asset management fee 2.0% annually; acquisition fee 2.0% (one-time); loan placement fee 0.75% of construction loan principal; loan guaranty fee 1.0% annually. Construction, property management, and leasing are at market rate.

Question 8

How are profits distributed?

Accepted Answer

Distributions follow a waterfall: first an 8% preferred return (cumulative, compounded annually), then return of capital pro rata to all members, then a 70/30 split (LP / Sponsor). Tax distributions are permitted and treated as advances against future tiers.

Question 9

Does the sponsor invest alongside me?

Accepted Answer

Yes. The sponsor co-invests at least 5% of total project equity (the lesser of $1,000,000 or 5.0% of GP equity), so our capital sits next to yours in every deal.

Question 10

Where do you invest?

Accepted Answer

Austin primary and high-growth secondary markets — Dripping Springs, Buda, Driftwood, and the broader Hill Country — with a focus on off-market acquisitions and ground-up development at a low basis relative to replacement cost.

Question 11

How will I track my investment?

Accepted Answer

Investors access reporting through our investor portal, receive our quarterly letter and periodic market notes, and receive K-1 tax documents annually.

Question 12

What are the risks?

Accepted Answer

Private real estate investments are speculative and illiquid and involve risk of loss, including loss of principal. Past performance is not indicative of future results. Any offer is made only through definitive offering documents, which control. Consult your own legal, tax, and financial advisors.

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