Blue Sea Capital

What Blue Sea Capital does

Blue Sea Capital is a private equity firm founded in 2013 by former Brockway Moran & Partners principals J.R. Davis and Rick Wandoff, headquartered in West Palm Beach, Florida with a secondary office in El Segundo, California. The firm invests as the first or second institutional partner in growth-oriented lower middle market companies, targeting enterprise values up to $500 million and EBITDA up to $30 million, with 95% of investments in founder-owned businesses. Since inception, Blue Sea has invested in 158 businesses across three sectors: healthcare, industrial growth, and aerospace & defense. The firm's core products are its three flagship private equity funds — Fund I ($327M, 2014), Fund II ($430M, 2021), and Fund III ($618M, 2023) — each closed above target, with aggregate assets under management exceeding $1.5 billion.

Blue Sea's revenue model follows standard private equity economics: recurring management fees (typically 1.5–2% on committed capital during the investment period, lower post-investment period) plus 20% carried interest on fund profits, supplemented by portfolio-level monitoring, transaction, and advisory fees. Distribution is entirely direct and relationship-based: the firm originates investments through its professional network, repeat founder and intermediary referrals, and a roster of sector-specialist Executive Advisors, rather than through auctions or financial sponsors.

The firm is staffed by approximately 30 professionals, including 20 investment professionals organized around the three sectors, plus dedicated operating partners for healthcare and human capital, a CFO function, and a Managing Director of Investor Relations. Blue Sea monetizes its portfolio via buy-and-build add-on acquisitions (137 of 158 investments to date) and exits to larger sponsors and strategics — with 2021 alone producing realizations to HCA Healthcare, Investcorp, and Blackstone, and a 2026 announced sale of WillowWood to CVC Catalyst III.

Name

Blue Sea Capital

Legal name

Blue Sea Capital LLC

Website

https://blueseacapital.com

Company type

Private

Founded year

2013

Operating status

Operating

Headcount range

11–50 employees

Short description

Blue Sea Capital is a private equity firm that partners with founders of growth-oriented lower middle market companies (up to $500M EV) in healthcare, industrial growth, and aerospace & defense, deploying capital across three funds totaling over $1.5B in AUM.

Ownership category

akta.pro rank

Product category

Private Equity Investment Management

NAICS

Portfolio Management and Investment Advice (523940), All Other Financial Investment Activities (52399), Other Financial Investment Activities (5239)

SIC

Investors, Nec (6799), Investment Advice (6282)

akta.pro primary industry

Business Services (B2B) Growth Equity (FSANACAD)

akta.pro secondary industry

SME Term Loans & Growth Capital (FSAKAGAB)

Keywords

• Private equity
• Growth capital
• Lower middle market
• Healthcare investments
• Aerospace defense investing

Headquarters

HQ city

Palm Beach Gardens

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Others

Revenue model

1. Management Fees: Blue Sea Capital generates revenue through management fees charged on assets under management, typically 1.5-2% annually on committed capital during the investment period.
2. Carried Interest: The firm earns carried interest (typically 20%) on profits from successful investments, aligning GP and LP interests and providing performance-based compensation.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels3 records

Core offering

Blue Sea Capital is a private equity firm that manages investment funds providing growth capital and operational value-add to founder-owned lower middle market companies valued up to $500 million. The firm invests exclusively in three verticals—healthcare, industrial growth, and aerospace & defense—typically as the first or second institutional investor, and generates revenue through management fees on committed capital and carried interest on investment profits.

Product overview

Blue Sea Capital is a private equity firm offering three distinct investment funds (Fund I at $327M, Fund II at $430M, and Fund III at $618M) that target growth-oriented lower middle market companies valued up to $500 million. The firm's investment strategy focuses on three vertical sectors: healthcare, industrial growth, and aerospace & defense. Their portfolio comprises platform investments and add-on acquisitions across diverse healthcare services (medical physics, dental labs, prosthetics, ophthalmology, oral surgery, concierge medicine, fertility services), industrial distribution (plumbing supplies, fasteners, electrical products), and aerospace & defense (MRO services, advanced materials, superabrasives). Blue Sea Capital delivers strategic and operational value-add to drive growth acceleration and business transformation for their portfolio companies.

Differentiator

Problem solved

Functional benefit

Products and services

• Blue Sea Capital Fund I LP

Quantifiable outcome

• 158 businesses invested since 2013
• +2 more outcomes

Named customers6 records

Segments2 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

One partnership is on record.

• CITIC Capital PartnerscoreStrategic or Co-development Partner · 4 June 2014Co-invested with Blue Sea Capital in DDS Lab, partnering with management to position the company for continued growth. The partnership combines global capabilities, financial resources, and industry expertise.

Scale indicators6 records

Recent moves8 records

Expansion highlights5 records

Direct peers

• Trinity Hunt Partners: Lower middle market growth equity firm investing in healthcare, industrial, and business services with founder-friendly positioning; directly comparable strategy, fund size, and vertical focus to Blue Sea.
• Wynnchurch Capital: Lower middle market PE firm with strong industrial growth and aerospace & defense vertical focus; similar target enterprise value range and active buy-and-build approach.
• Pfingsten Partners: Lower middle market PE firm focused on industrial growth, business services, and consumer products; similar fund size, target EV range, and operational value-add approach.
• LNC Partners: Lower middle market growth equity firm focused on healthcare and consumer services; comparable founder-friendly orientation and target company size.
• Excellere Partners: Denver-based lower middle market growth equity firm focused on healthcare services, industrial growth, and business services; closely comparable sector mix, fund size, and founder-friendly approach.
• Kian Capital Partners: Lower middle market growth equity firm with focus on healthcare services and industrial growth; closely comparable fund size, EV range, and founder-friendly model.
• CIVC Partners: Lower middle market growth equity firm with sector focus on business services and consumer services; similar strategy of partnering as first institutional capital with founder-led companies.
• Shore Capital Partners: Lower middle market PE firm with significant healthcare services exposure and founder-friendly approach; comparable sub-sector focus and platform/add-on strategy.

Broad incumbents

• Audax Group: Established middle market PE firm with extensive healthcare, industrial, and business services portfolios; comparable lower middle market strategy but at larger scale across multiple funds.
• Sun Capital Partners: Established lower middle market PE firm with broad sector exposure across industrial, consumer, and business services; comparable target company size but more diversified sector strategy.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks5 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/blue-sea-capital-llc

Revenue estimate

Valuation estimate

Number of profiles

Profiles18 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A11 records

Investments9 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Blue Sea Capital