Blue Sea Capital Closes $618 Million Fund III, Exceeding Target
September 18, 2023Latest Fundraise Brings the Firm’s Aggregate Assets Under Management to $1.4 Billion
WEST PALM BEACH, FL – Blue Sea Capital (“Blue Sea”), today announced that it has successfully closed Blue Sea Capital Fund III LP and Blue Sea Capital Executive Fund III LP (collectively “Fund III”), a $618 million private equity fund. Similar to Blue Sea’s prior funds, Fund III exceeded its target of $600 million, representing an increase of over 40% from Blue Sea Capital Fund II.
Consistent with the strategy of its predecessor funds, Fund III will focus on partnering with exceptional entrepreneurs to build best-in-class, high-growth, enduring platforms within attractive sub-sectors of the healthcare and industrial end-markets. Since its founding, Blue Sea has invested in over 100 differentiated and growth-oriented companies, including 19 platforms and 95 add-on acquisitions, while strategically building-out its organization over the last several years to 30 people, including 20 investment professionals and operating team members.
“We are thankful for our investors’ support as we seek to build special, best-in-class companies and deliver attractive returns,” said Blue Sea Capital Managing Partners, J.R. Davis and Rick Wandoff. “We also want to acknowledge our Fund I & II portfolio company leadership teams, who continue to drive the positive outcomes which contribute to strong investor support.”
Fund III benefitted from a strong re-up rate while adding a number of new institutional investors, including leading insurance companies, funds-of-funds, endowments and foundations, financial institutions, consultants, and multi-family offices. In addition, more than 50 CEOs, founders, and industry executives invested in the fund.
Fund III is already approximately 30% invested across three platform investments, including Flagger Force, a leading regional provider of short-term traffic control services, Rhino Tool House, a leading value-added distributor of intelligent fastening solutions, customized material handling solutions and calibration services to original equipment manufacturers in a wide range of end markets, and Hatch Fertility, a leading fertility services platform that provides a unique, vertically integrated offering for all medical and non-medical third-party reproductive services.
Lazard acted as the exclusive placement advisor to Fund III. Kirkland & Ellis LLP served as legal counsel.
Blue Sea Capital is a private equity firm based in West Palm Beach, Florida that invests in growth-oriented lower middle market companies valued up to $300 million. The firm has over $1.4 billion in assets under management and invests across three industry verticals: aerospace & defense, healthcare and industrial growth. Blue Sea Capital’s strategy is to partner with talented leaders and differentiated companies, typically as the first or second institutional investor, and deliver strategic and operational value-add that drives growth acceleration, industry outperformance and business transformation.
