Cherokee Federal acquired a majority stake in Management Science and Innovation LLC, a federal consulting firm, marking the second investment for its year-old growth capital unit, Sovereign Capital. Terms were not disclosed.
The acquisition builds on Cherokee Federal’s strategy to expand through targeted investments in founder-led firms serving the federal market. It’s the second investment for Sovereign Capital, following a 2024 deal with Advanced Technology Applications.
Founded in 2002, Reston, Va-based MSI provides consulting services in process optimization, human capital, and digital transformation. The firm specializes in robotic process automation and artificial intelligence for federal agencies, and recently secured a spot on the General Services Administration’s OASIS+ contract vehicle. MSI is also a certified HUBZone small business.
The consulting firm has won nearly $60 million in federal contracting and subcontracting awards over the past five years, according to data from contracting intelligence firm HigherGov. Awards include work for the Government Services Association (GSA), Forest Service, HUD and the Navy.
“This is another productive step in advancing our long-term growth strategy,” said Steven Bilby, president of Cherokee Federal.
Dan Heckman, MSI’s founder and CEO, will continue to lead the firm. “Partnering with Sovereign Capital and Cherokee Federal provides the resources and reach to take everything we have built to the next level,” he said.
Sovereign Capital focuses on mission-driven firms in the federal contracting space. “MSI represents the type of company we’re built to support—mission-focused, founder-led, and ready to scale,” said Squire Lawrence, vice president of Sovereign Capital.
Cherokee Federal is the government contracting division of Cherokee Nation Businesses, which employs 11,000 people and operates across sectors including health care, construction, engineering, and IT.
The Cherokee Nation has used acquisitions to drive growth in federal markets, part of a broader strategy to expand the tribe’s economic footprint beyond gaming.
