Randolph Friedman, former chief executive officer of pharmaceutical distribution company The Harvard Drug Group, has launched independent private equity firm Friedman Capital.
The firm will initially make co-investments in distribution and healthcare services businesses, with the ultimate goal of becoming a control investor with its own fund. During Freidman’s 23-year tenure as CEO of The Harvard Drug Group, the company completed 11 add-on acquisitions before being sold to Courtsquare Capital Partners in 2010. Headquartered in Washington DC, Friedman Capital will focus on mid-market companies in North America.
“We’re different than your classic private equity firm because we’re not founded by a specialist in capital, we’re founded by a specialist in operation,” Friedman told PEI. “We believe that sellers will look forward to the opportunity to partner with a firm that is grounded in the factors that impact as an operator.”
Friedman will target companies with EBITDA of between $10 million and $50 million. The firm will invest the personal capital of the Friedman family, and will partner with a select group of high net worth and institutional investors for larger transactions. The firm will not invest in distressed healthcare businesses.
“[Healthcare] has areas of opportunity and areas that are tired and worrisome, and we will steer clear of the latter,” Friedman said.