Blue Sea Closes Continuation Vehicle for One Physics

Blue Sea Capital has closed its first single-asset continuation vehicle for One Physics, an outsourced provider of the safety and compliance testing that keeps hospital radiation equipment running within regulatory limits.

The new continuation fund was supported by a syndicate of institutional secondary and credit investors including Apogem Capital, a private markets affiliate of New York Life that manages approximately $44.6 billion, and Churchill Asset Management, the Nuveen-affiliated middle market financing specialist with $66 billion of committed capital, Dextra Partners, a New York-based multi-strategy firm with approximately $5 billion under management, and Future Standard, a mid-market specialist managing approximately $94 billion. Abbott Capital and Twin Bridge Capital Partners also participated.

One Physics is an outsourced medical physics organization that supplies the specialists who test, calibrate, and certify the radiation-emitting equipment used across hospitals and imaging centers. Medical physicists confirm that machines such as CT and mammography scanners, nuclear medicine systems, and radiation therapy units deliver accurate doses and meet the testing schedules mandated by federal and state regulators.

One Physics contracts its more than 210 physicists to hospitals, health systems, imaging centers, cancer care groups, and other healthcare facilities, which are required to have this work performed on a recurring, time-based schedule rather than as a one-time service.

The company’s products and services portfolio span diagnostic medical physics, which covers imaging equipment; therapy medical physics, which supports radiation oncology machines; and radiation safety services, under which physicists advise facilities on shielding and exposure limits. One Physics also runs a dosimetry and badge program that tracks how much radiation individual staff members absorb over time, provides locums physicists to cover short-term staffing gaps, and offers shielding design and equipment commissioning for facilities installing new machines.

One Physics serves more than 7,000 healthcare client sites across upwards of 45 states and operates seven residency programs that train diagnostic and therapy medical physicists.

One Physics was formed in April 2019, when Blue Sea Capital partnered with Maryland-based Krueger-Gilbert Health Physics to create the platform then known as Apex Physics Partners, and it adopted the One Physics name in 2024 following five years of geographic expansion. One Physics, led by CEO Jason Schneck, is headquartered near Baltimore in Towson, Maryland.

Since Blue Sea’s initial investment in 2019, One Physics has completed 22 acquisitions, assembling a national footprint from local and regional medical physics practices. Early partnerships took the platform into Ohio, Texas, and New Mexico through additions including Ohio Medical Physics Consulting, National Physics Consultants, Radiological Physics, and ZapIT! QA. The company subsequently expanded across the Midwest and South with additions such as Texas-based D. Harris Consulting (2021); Indiana-based Advanced Medical Physics (2021); Indiana-based INphysics (2021); Florida-based Fusion Physics (2022); and Arizona-based Radiation Physics & Engineering (2022).

The single-asset continuation vehicle, meaningfully oversubscribed at close, provides liquidity to existing investors while giving the business additional capital to fund further acquisitions and organic growth, with both Blue Sea and One Physics management reinvesting significantly alongside the new capital.

“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, a managing partner at Blue Sea. “We are excited to continue scaling this exceptional business and remain grateful for the ongoing support of our investors.”

The United States anchors a global medical physics market that independent researchers size at roughly $5.9 billion to $6.3 billion in 2026, with North America representing about 41 percent of the total, or close to $2.5 billion domestically (PEP calculations based on Straits Research and Mordor Intelligence data). Analysts project the global market will grow at a compound annual rate in the mid-single digits to reach roughly $9.7 billion to $10 billion by the mid-2030s. Diagnostic imaging represents the bulk of demand, accounting for about 61 percent of the market by modality, according to Straits Research.

Growth is driven less by discretionary spending than by rules that require recurring, documented testing of radiation-emitting equipment, which converts much of the market into non-deferrable, repeat work. A persistent shortage of credentialed medical physicists, the rising installed base of imaging and radiation oncology machines, and the administrative burden of compliance have pushed hospitals and imaging centers toward outsourcing rather than staffing the function in-house. The field remains highly fragmented across independent local practices, creating a long runway for consolidators able to combine national scale with local coverage.

“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,” said Mr. Schneck. “As we deepen our local market presence across a national footprint, we remain hyper-focused on what’s always driven us: delivering high-quality, reliable service for healthcare clients and being an employer of choice for medical physicists nationwide.”

Blue Sea Capital, based in West Palm Beach, Florida, invests in companies with $5 million to $30 million of EBITDA and enterprise values of no more than $300 million. Sectors of interest include aerospace and defense, healthcare, and industrial growth. Blue Sea, led by managing partners J.R. Davis and Rick Wandoff, is currently investing from Blue Sea Capital Fund III LP, which closed above target in September 2023 with $618 million of capital.

Lazard served as sole secondary advisor and Piper Sandler served as industry advisor to Blue Sea and One Physics. Kirkland & Ellis provided legal services.