Lower middle market private equity firm

Blue Sea Capital

At a glance

Assets under management$2.4B (as of Oct 2026) S7
Latest fundBlue Sea Capital Fund III, $618M (Sep 2023) S6
EBITDA range$5M to $30M S3
Check size$30M to $250M S3
Deal typesPlatform, Add-on, Minority S3
SectorsHealthcare Services, Dental, Veterinary, Industrial & Manufacturing, Distribution, Construction Services

What Blue Sea Capital buys

Blue Sea Capital is a West Palm Beach, Florida firm that buys majority stakes in growing lower middle market companies in three areas. In healthcare it backs outsourced clinical services, physician, dental and veterinary practice groups, and medical products makers. Its industrial growth and aerospace and defense teams back specialty manufacturers, industrial service firms and distributors. Its 2026 criteria call for $5 million to $30 million of EBITDA, an equity check of $30 million to $250 million and an enterprise value of up to $500 million. It is often a company's first or second institutional owner, and it will look at a minority stake or a business that needs a new leader case by case.

Its latest fund, Fund III, closed at $618 million in 2023. The firm says every current holding is hunting for add-ons, and that is how most smaller businesses meet Blue Sea. One Physics has bought 22 medical physics practices since 2019, and Rhino Tool House and Flagger Force each closed add-ons in 2026.

Recent deals

Announced in the 24 months before October 20, 2026.

DateCompanyTypeSectorSource
Oct 2026Dynamic AccessDallas provider of on-site vascular access nursing teams to hospitals and post-acute facilities in 25 statesPlatformHealthcare ServicesSource
Sep 2026CompletePetContract maker of pet supplements bought from Align Capital Partners; management reinvested and stays in chargePlatformIndustrial & ManufacturingSource
Jul 2026One PhysicsFirst continuation vehicle, extending Blue Sea's hold of the medical physics platform and adding capital for acquisitionsInvestmentHealthcare ServicesSource
Jun 2026WillowWoodMajority stake in the prosthetics maker sold to CVC Catalyst; Blue Sea, the founding family and management reinvestExitIndustrial & ManufacturingSource
Jun 2026MidAmerica Safety SolutionsEvansville, Indiana traffic control firm added to Flagger ForceAdd-onConstruction ServicesSource
May 2026Petrone AssociatesStaten Island medical physics firm founded in 1982, One Physics' 22nd acquisitionAdd-onHealthcare ServicesSource
Mar 2026Ergonomic Solutions and TeknikorMaterial handling and automation controls firms in Kansas and Massachusetts added to Rhino Tool HouseAdd-onIndustrial & ManufacturingSource
Aug 2025MicroCareNew Britain, Connecticut maker of precision cleaning consumables with seven sites in the US, UK and AsiaPlatformIndustrial & ManufacturingSource
Jun 2025Diagnostic Technology ConsultantsFamily-led medical physics practice in Kansas, Missouri and Florida added to One PhysicsAdd-onHealthcare ServicesSource
Dec 2024UWBA DesignColumbus, Indiana automation controls company added to Rhino Tool HouseAdd-onIndustrial & ManufacturingSource
Oct 2024NTC Traffic ControlLouisville traffic control firm that took Flagger Force into KentuckyAdd-onConstruction ServicesSource

Portfolio by sector

From the firm's portfolio page S4.

Aerospace & Defense

  • Plasma Processes

Healthcare

  • Beacon Oral Specialists
  • CompletePet
  • Dynamic Access
  • Hatch Fertility
  • Heritage Vet Partners
  • One Physics
  • Scout
  • SignatureMD
  • Specialty Smile Partners
  • Spectrum Vision Partners
  • WillowWood

Industrial Growth

  • Abrasive Technology
  • Flagger Force
  • Innovative Labs
  • MicroCare
  • ProSource
  • Rhino Tool House

Past investments: DDS Lab, DECA Dental Group, MD Now, NSi Industries, RESA Power, Sunvair Aerospace Group

Greymont’s take

How Blue Sea Capital fits a seller

Blue Sea suits founders of healthcare services businesses, dental, vision or veterinary practice groups, specialty manufacturers and industrial service companies who want a partner for a multi-year growth plan. A sale usually means Blue Sea takes a majority and the owners and managers keep a real stake. CompletePet's management reinvested in September 2026, and when WillowWood's majority was sold to CVC in June 2026, Blue Sea, the founding Arbogast family and management all put money back in. Practice owners and small operators most often join as add-ons, like Petrone Associates, a Staten Island physics firm that became One Physics' 22nd acquisition in May 2026.

Blue Sea will hold a strong business a long time. It moved One Physics into a continuation fund in July 2026 instead of selling it. An owner rolling equity should ask how long the firm expects to own the company and when the rolled stake could be cashed out.

Questions owners ask

How big a company does Blue Sea Capital look for?

Its 2026 criteria target companies with $5 million to $30 million of EBITDA and enterprise values of $30 million to $500 million, with Blue Sea putting in $30 million to $250 million of equity. Smaller businesses usually join one of its platforms as an add-on.

Does Blue Sea invest in dental or veterinary businesses?

Yes, through practice support platforms. Beacon Oral Specialists works with oral surgeons, Specialty Smile Partners with orthodontists and pediatric dentists, and Heritage Vet Partners serves livestock producers with veterinary care and herd health products. It sold DECA Dental, a Texas dental group, to Blackstone in 2021.

Will Blue Sea take a minority stake?

Only now and then. Its strategy page says it prefers majority ownership but will weigh a minority deal when the partner is a good fit, and it will also look at companies that need a new chief executive.

Do owners and managers keep a stake after a Blue Sea deal?

Usually. CompletePet's management reinvested alongside Blue Sea in September 2026, and in the June 2026 WillowWood sale to CVC Catalyst, Blue Sea, the Arbogast family and management all reinvested in the business.

Sources

  1. S1Blue Sea Capital home page Accessed October 20, 2026
  2. S2Blue Sea Capital: About Accessed October 20, 2026
  3. S3Blue Sea Capital: Strategy and investment criteria (criteria image uploaded February 2026) Accessed October 20, 2026
  4. S4Blue Sea Capital: Portfolio Accessed October 20, 2026
  5. S5Blue Sea Capital: News Accessed October 20, 2026
  6. S6Blue Sea Capital Closes $618 Million Fund III, Exceeding Target (September 18, 2023) Accessed October 20, 2026
  7. S7Blue Sea Capital Acquires Dynamic Access (October 8, 2026), with the firm's current About box Accessed October 20, 2026
  8. S8Blue Sea Capital, the Arbogast Family, and Management Sell Majority Stake in WillowWood (June 16, 2026) Accessed October 20, 2026
  9. S9Blue Sea Capital Closes Oversubscribed Continuation Vehicle for One Physics (July 30, 2026) Accessed October 20, 2026
  10. S10Blue Sea Capital Partners with CompletePet (September 1, 2026) Accessed October 20, 2026
  11. S11Blue Sea Capital Closes First Fund with $327 Million (June 4, 2014) Accessed October 20, 2026

Compiled by Greymont Advisors from public sources, including the firm’s own website and press releases. Greymont is not affiliated with Blue Sea Capital. Figures are as reported on the dates shown and may have changed. Request a correction

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