About LSG
Lykos Sovereign Group is a permanent capital firm. We acquire essential services businesses and hold them — not as a portfolio strategy, but as a permanent commitment to the people, communities, and industries they serve.
The Founding Conviction
The American lower middle market is full of extraordinary businesses. Contractors who maintain the infrastructure cities depend on. Operators who deliver healthcare in communities that have no alternatives. Service companies that have been the economic anchor of a region for twenty or thirty years.
Most of them will never receive a serious institutional offer that respects what they built. The ones that do will be acquired by a fund that will sell them again in five to seven years. The legacy will transfer to another buyer, and then another, each optimizing for a slightly different exit. The employees who stayed through all of it will wonder what they were a part of.
Lykos Sovereign Group was incorporated as a Delaware C-corporation to be the permanent owner those businesses deserve. No fund lifecycle. No exit mandate. No LP pressure to return capital at a predetermined horizon. When we acquire a business, we intend to own it for the life of the enterprise.
Structure as Commitment
Traditional private equity firms are not bad actors. They are rational institutions operating within the incentive structure their limited partners demand. The problem is not character — it is architecture. A fund with a ten-year term will always, eventually, be forced to sell. That exit pressure shapes every decision made before it: the leverage ratios, the management incentives, the capital expenditure deferrals, the growth strategies optimized for multiple expansion rather than durable operations.
LSG is structured differently by design. We hold equity permanently. We capitalize from long-duration investors who share our conviction that cash flow compounding over decades produces better outcomes than the endless cycle of acquisition, optimization, and sale. Our management teams build knowing their company will still exist in twenty years. That knowledge changes how they lead.
The lower middle market — businesses generating $2M to $10M in EBITDA — is where we operate. It is paradoxically the most overlooked segment of the American economy. These companies are too large for individual buyers, too small for bulge-bracket attention, and too often passed over by middle-market funds whose fee economics favor larger platforms.
We believe this segment is where the most durable businesses live: founder-built, locally dominant, competitively entrenched, with customer relationships that took decades to build and would take decades to displace. The moats here are not technical — they are relational, operational, and geographic. They compound quietly. That is exactly the kind of asset we want to own permanently.
Where We Concentrate
We concentrate in infrastructure and energy services and healthcare — not because they are fashionable, but because their demand characteristics are structurally durable. People will always need power, water, and roads maintained. They will always need medical care. These are not cyclical bets. They are civilizational constants.
Sector One
Utility contractors, pipeline and facility maintenance, environmental services, energy infrastructure operators, and related essential services that keep the physical systems of civilization functioning. These businesses operate under long-term contracts, serve municipalities and utilities that cannot afford service interruption, and hold licensing and equipment barriers that protect their competitive position for decades.
Sector Two
Behavioral health, specialty care, home health, dental support organizations, and ancillary healthcare services — businesses that deliver care to patients who depend on them, in markets where supply is structurally constrained relative to demand. The demographic tailwinds are durable. The regulatory barriers to entry are meaningful. The human necessity is unconditional.
What Permanent Ownership Means
LSG 2050 is our internal framework for the long-range vision: a diversified portfolio of essential services platforms, each a dominant operator in its geography and vertical, each contributing to a permanent capital base that compounds across generations. It is not a marketing document. It is the actual frame by which we evaluate every decision we make today.
The question we ask is not "what does this look like at exit?" There is no exit. The question is "what does this look like in twenty-five years?" That frame demands better people, better operations, better governance, and a deeper relationship with the communities these businesses serve. It also makes us slower to acquire — and far more committed to what we do acquire.
We are at the beginning of that story. The institutional infrastructure is being built. The first acquisitions will define the character of the portfolio. The capital partners we choose now will shape the culture for decades. We are deliberate about all of it — because the decisions made at the founding of an institution are the hardest ones to undo.
The Four Obligations of Permanent Ownership
Our structure carries no expiration date. Management teams build without the knowledge that their company will be sold on a schedule determined by someone else's fund lifecycle.
Cash flow is reinvested into the businesses that generate it and deployed into new acquisitions — not returned to investors on a schedule that constrains operational decisions.
We retain the people who built the business. Their institutional knowledge, customer relationships, and operational judgment are the asset — not a line item in the EBITDA they generate.
Businesses that provide essential services are accountable to more than their owners. Permanent ownership means we carry that accountability forward — not hand it off at the first attractive multiple.