How We Strategically Focus To Build Value

As with much in life, we believe superior, sustained performance is predicated on the intersection of 3 things: opportunity, capabilities and motivation. Similarly, the Blue Sea Capital investment strategy is focused around situations characterized by the following: (i) opportunities for meaningful value creation, (ii) our experience / skill set / expertise compares favorably, and (iii) the types of entrepreneurs, companies, industries and value creation method we enjoy. In this spirit, we believe:

  • The lower middle market possesses unique attributes that make it an attractive space for private equity investment. We believe that the level of experience and combination of talents in the Blue Sea Capital team is unusual for a firm focused on companies of less than $200 million of enterprise value.
  • Focusing on industries and business models where Blue Sea Capital has expertise and operating insights is important. We target expanding and relatively dynamic sectors (complexity, regulations, pace of change, etc.) with many growth-oriented lower middle market companies. We seek to understand our companies and their unique industry positioning better than anyone.
  • Value creation through building better businesses is paramount. In general, we believe it far better to pay a fair price for a good business than a good price for a fair business. Our focus, therefore, is on creating value through collaborating with management to drive operational improvements and transform companies from good to great businesses.
  • Selectivity is critical to generating great results and meaningful partnerships. We believe that investment performance is defined as much, if not more, by bad deals foregone as by good investments made, and that a capital preservation emphasis entails focusing on the most compelling opportunities where we have deep conviction. We also believe that a quality over quantity philosophy is at the core of thoughtful, truly value-added partnerships with management.
  • We seek to work with others we trust, like and respect, marked by strong alignment of interests and motivation. Internally and externally, we believe in working with others who “eat their own cooking” and are excited about what they do.