Healthcare veteran to co-invest with PE

Former CEO of The Harvard Drug Group Randolph Friedman has founded Friedman Capital, which will focus on North American mid-market distribution and healthcare services companies.

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.