The New Exit: How One Physics Highlights PE's 'Hold and Grow' Strategy

WEST PALM BEACH, FL – July 30, 2026 – Blue Sea Capital's announcement today of a successful continuation vehicle for its star portfolio company, One Physics, is far more than a standard private equity transaction. It is a powerful illustration of a structural shift reshaping the industry, where top-performing assets are no longer rushed to the exit but are held and nurtured for extended value creation. The “meaningfully oversubscribed” deal, led by a syndicate of sophisticated secondary investors, provides a masterclass in modern private equity strategy, highlighting the immense value found in consolidating fragmented, mission-critical service industries.

Blue Sea's move to create its first-ever single-asset continuation fund allows it to retain its stake in a company it calls a “crown jewel platform,” while providing liquidity to early investors and injecting fresh capital for growth. “Our first continuation vehicle allows us to extend our partnership with a crown jewel platform and provides meaningful capital for One Physics’ next phase of growth acceleration,” said J.R. Davis, Managing Partner at Blue Sea. This maneuver places the firm and its new partners at the forefront of a major market evolution.

A New Blueprint for Value Creation

The private equity playbook has traditionally been defined by a finite fund life, forcing general partners (GPs) to sell promising companies, sometimes prematurely. The continuation vehicle (CV) upends this model. Once a niche tool, GP-led secondary transactions, primarily CVs, have exploded into a core strategic option, with volumes hitting a record $108 billion in 2025. This isn't just a response to a sluggish M&A and IPO market; it's a fundamental change in how GPs manage their best assets.

For a firm like Blue Sea, the benefits are clear. Instead of selling One Physics, it gets to double down on a proven winner. The new vehicle provides a fresh five-year runway and significant capital to continue an aggressive growth strategy. For the original fund's limited partners (LPs), it offers a choice: cash out with a strong return or roll their investment into the new vehicle to participate in the next chapter of growth. New investors, such as lead backers Apogem Capital and Churchill Asset Management, get to bypass the blind-pool risk of a traditional fund, investing directly into a known, high-performing asset with a clear value proposition and an established management team. The significant reinvestment by both Blue Sea and One Physics management further aligns all parties, mitigating the conflict-of-interest concerns that can sometimes shadow such deals.

Consolidating a Mission-Critical Market

To understand the intense investor appetite for this deal, one must look at the operational innovation driving One Physics itself. The company is the leading provider of outsourced medical physics services in North America—a sector that is as essential as it is complex. Its more than 210 medical physicists provide regulatory-mandated testing, inspection, and compliance services for radiation-emitting equipment in hospitals and clinics. These are not discretionary services; they are required by law to ensure the safety and efficacy of everything from diagnostic CT scanners to cancer radiation therapy machines.

Since Blue Sea’s initial investment in 2019, One Physics has executed a masterful roll-up strategy, completing 22 acquisitions. It has transformed a fragmented landscape of small, local physics practices into a national powerhouse serving over 7,000 client sites across more than 45 states. This consolidation drive creates immense operational leverage. By providing its partner practices with centralized back-office support—including finance, HR, recruiting, and IT—One Physics allows physicists to focus on their critical clinical work. This model has proven highly effective in a market characterized by a shortage of skilled professionals and ever-increasing regulatory burdens from agencies like the FDA and state-level health boards.

The market itself is buoyed by powerful tailwinds, including an aging population, rising cancer rates, and constant technological advancements in medical imaging and therapy. The North American medical physics market, valued at nearly $6 billion in 2026, is projected to exceed $10 billion by 2035. One Physics is perfectly positioned to capture an outsized share of this growth. “We are thrilled to continue our partnership with Blue Sea and are well positioned to continue our acquisition strategy and capitalize on the attractive market opportunity before us,” affirmed Jason Schneck, CEO of One Physics. His focus on being an “employer of choice” is a key strategic advantage, as attracting and retaining top talent through initiatives like its seven residency programs is critical to scaling further.

A Magnet for 'Smart Money'

The fact that this continuation vehicle was “meaningfully oversubscribed” speaks volumes. The consortium of lead investors—Apogem Capital, Churchill Asset Management, Dextra Partners, and Future Standard—represents a who's who of sophisticated private markets specialists. Their enthusiastic participation signals deep confidence not only in Blue Sea's stewardship but in the underlying thesis: that regulatory-driven, non-cyclical healthcare services are among the most durable investments in any economic climate.

Firms like Apogem and Dextra have dedicated secondary strategies that actively seek out GP-led deals involving “trophy assets” from high-conviction managers. For them, One Physics is an ideal target: a market leader in a defensive sector with a proven growth formula and strong management alignment. Churchill and Future Standard, with their deep focus on the U.S. middle market, recognize the power of backing a platform that is systematically professionalizing a cottage industry. The deal validates the resilience of essential services and the growing appeal of single-asset CVs, which now account for over half of all GP-led secondary volume.

Ultimately, the Blue Sea and One Physics partnership is a case study in modern value creation. It demonstrates how identifying a resilient niche, executing a disciplined consolidation strategy, and utilizing innovative capital structures can generate superior returns and build a lasting enterprise. With fresh capital and a renewed mandate, One Physics is now equipped to accelerate its mission of ensuring safety and quality in healthcare delivery across the continent.