Lower middle market private equity firm
Blue Sage Capital
- HeadquartersAustin, TX S2
- Founded2003 S2
- Websitebluesage.com
- Last verifiedOctober 19, 2026
At a glance
| Assets under management | $1.2B (as of Sep 2026) S6 |
|---|---|
| Latest fund | Blue Sage Strategic Credit Fund, $287M (Oct 2025) S5 |
| EBITDA range | $5M to $25M S2 |
| Revenue range | $20M to $200M S2 |
| Check size | $25M to $60M S2 |
| Deal types | Platform, Add-on, Minority, Growth S1 |
| Geography | Texas, Southwest US, Midwest US S4 |
| Sectors | Environmental & Waste, Landscaping, Industrial & Manufacturing, Construction Services |
What Blue Sage Capital buys
Blue Sage Capital is an Austin, Texas firm, founded in 2003, that invests in lower middle market companies in three areas: environmental solutions, niche manufacturing and specialty services. It targets $5 million to $25 million of EBITDA, $20 million to $200 million of revenue and enterprise values of $40 million to $250 million, and it aims to put $25 million to $60 million into each company. It mainly does control buyouts and recapitalizations of founder- and family-owned businesses, prefers to be the first institutional investor, and favors Texas, the Southwest and the Midwest.
Its capital comes from the $618 million Fund IV, closed in January 2025, and a $287 million Strategic Credit Fund closed that October, which can invest debt as well as equity and opens the door to smaller deals. The firm will also take minority stakes: the founder of Clean Team kept majority ownership in its September 2026 deal. Smaller businesses often join an existing platform that is buying in its market, such as Impact Property Solutions, Blue Castle Waste Solutions or Dwell Vacation Rentals.
Recent deals
Announced in the 24 months before October 19, 2026.
| Date | Company | Type | Sector | Source |
|---|---|---|---|---|
| Sep 2026 | Clean TeamToledo commercial janitorial company with 18 branches; the founder stays CEO and keeps majority ownership | Minority | Source | |
| Sep 2026 | Blue Castle Waste SolutionsNew solid waste and recycling platform formed from founder-owned haulers in Minnesota and Iowa, with Castle Capital | Platform | Environmental & Waste | Source |
| Apr 2026 | Dwell Vacation RentalsShort-term rental management platform with more than 2,000 units on the South Carolina coast, formed with MBN Brands | Platform | Property Management & HOA | Source |
| Nov 2025 | Interior Logic Group Property Services divisionRental housing flooring business with 27 branches added to Impact Property Solutions | Add-on | Construction Services | Source |
| November 2025 | Barricades UnlimitedTraffic control and pavement marking company exited after an investment made in June 2020 | Exit | Source | |
| Oct 2025 | Blue Sage Strategic Credit FundFirst and final close at $287 million, above its hard cap; can invest debt and equity | Fund close | Source | |
| Oct 2025 | Skid Pro Attachments and Accessories UnlimitedMerger of two founder-owned skid steer attachment businesses in Minnesota | Platform | Industrial & Manufacturing | Source |
| Jul 2025 | Clean ScapesAustin commercial landscaping company founded in 2005 | Platform | Landscaping | Source |
| Jan 2025 | Blue Sage Capital IVFinal close at $618 million, more than double the prior fund | Fund close | Source | |
| Jan 2025 | United GasketDie-cut gasket maker added to All-State Industries, its fourth add-on | Add-on | Industrial & Manufacturing | Source |
| Nov 2024 | A.Y. McDonald Pump DivisionResidential and farm water pump line added to Baker Manufacturing | Add-on | Industrial & Manufacturing | Source |
| Oct 2024 | MHWOutsourced import, compliance and fulfillment services for beverage alcohol brands | Platform | Source |
Portfolio by sector
From the firm's portfolio page S3.
Environmental Solutions
- Blue Castle Waste Solutions
- Geo-Solutions
Niche Manufacturing
- All-State Industries
- American Alloy
- Baker Manufacturing Company
- Clearly Clean
- Skid Pro
Specialty Services
- Clean Scapes
- Clean Team
- Dwell Vacation Rentals
- Impact Property Solutions
- MHW
- NexGen Financial
- Purpose Legal
Greymont’s take
How Blue Sage Capital fits a seller
Blue Sage suits founders and families, especially in Texas, the Southwest and the Midwest, who are taking outside money for the first time and want a partner that works at the board level rather than running daily operations. It is flexible on structure: it can buy control, take a minority stake as it did with Clean Team, or use its credit fund to mix debt and equity. Founders often keep a role; at Skid Pro the founders stayed in operating jobs while a new CEO came in.
The firm says its average hold is five to eight years, which is longer than many buyers. Owners should ask whether their deal would come from the buyout fund or the credit fund, since that shapes the terms, and who will lead the company after closing.
Questions owners ask
Does Blue Sage Capital invest in waste and environmental companies?
Yes. Environmental solutions is one of its three verticals. In September 2026 it launched Blue Castle Waste Solutions by partnering with founder-owned waste haulers in Minnesota and Iowa, and it previously built and sold Frontier Waste Solutions and R360 Environmental Solutions.
Will Blue Sage take a minority stake?
Yes. Its stated criteria include both majority and minority equity as well as mezzanine debt. In the September 2026 Clean Team deal, the founder and CEO kept majority ownership and continues to run the company.
How big does a company need to be for Blue Sage?
Blue Sage targets $5 million to $25 million of EBITDA and $20 million to $200 million of revenue. Its October 2025 credit fund announcement says that across its funds it can invest from $5 million, which allows smaller deals.
How long does Blue Sage usually own a company?
The firm says its average hold period is five to eight years. For example, it held Barricades Unlimited from June 2020 to November 2025 and has owned All-State Industries since February 2019.
Sources
- S1Blue Sage Capital home page (investment criteria) Accessed October 19, 2026
- S2Blue Sage Capital: Our Story (criteria, hold period, partnership approach) Accessed October 19, 2026
- S3Blue Sage Capital: Our Portfolio (current and exited companies) Accessed October 19, 2026
- S4Blue Sage Capital Closes Fund IV at $618 Million (January 29, 2025) Accessed October 19, 2026
- S5Blue Sage Capital Closes Blue Sage Strategic Credit Fund at $287 Million (October 2, 2025) Accessed October 19, 2026
- S6Blue Sage Capital Invests in Clean Team (September 30, 2026) Accessed October 19, 2026
- S7Blue Sage Capital Launches Blue Castle Waste Solutions (September 10, 2026) Accessed October 19, 2026
- S8Blue Sage Capital & MBN Brands Launch Dwell Vacation Rentals (April 22, 2026) Accessed October 19, 2026
- S9Blue Sage Capital: News Accessed October 19, 2026
Compiled by Greymont Advisors from public sources, including the firm’s own website and press releases. Greymont is not affiliated with Blue Sage Capital. Figures are as reported on the dates shown and may have changed. Request a correction