Investment Philosophy

Friedman Capital seeks opportunities where our deep operational and sector expertise uniquely position us to add value.

Targeted Investment Focus

Friedman invests in operating businesses in the Distribution and Healthcare Services industries.

We believe that our sector-focused investment strategy allows us to leverage deep industry relationships that provide a meaningful advantage: (i) sourcing opportunities, (ii) conducting due diligence, and (iii) identifying the right operational and financial advisors to help our companies achieve their full potential.

Respect for Sellers Interests

Having sold family-owned businesses to private equity investors ourselves, we understand that the process of selling a firm is time consuming and uncertain. Our capital resources allow us to provide sellers with rapid response and certainty of close.

Additionally, we encourage owners (to the extent they desire) to co-invest alongside of us, and to remain active in their businesses following a sale to Friedman Capital.

Rigorous Diligence, Responsible Underwriting, and Creative Structuring

Friedman Capital relies heavily on comprehensive due diligence to ensure we fully understand the risks and opportunities of each investment.

As long-term investors, we understand the importance of capitalizing our investments prudently, with an appropriate amount of debt to weather industry cycles, and sufficient liquidity to fund growth.

Though we target control investments and traditional leveraged buy-outs, the ultimate structure of each transaction is unique. We seek to balance the interests of sellers, management teams, and co-investors to create a capital structure that best serves all parties.

Alignment of Interests

We believe that aligning our interests with those of our co-investors and management teams is critical to creating long-term value. Each of Friedman Capital’s Principals makes a significant personal investment in every transaction. Similarly, Friedman requires the members of each prospective management team to make a significant personal co-investment alongside of us. Upon closing, Friedman works with management to structure appropriate incentive based compensation plans to align the interests of employees throughout the firm.

Post Acquisition Operational and Financial Support

In the period between signing and closing an investment, Friedman Capital works closely with management to draft a “full-potential” optimization plan for the business. Continuing post-close, Friedman Capital works with management to identify value-creation initiatives and provides a range of operational and financial support.

Responsible Exit

Friedman Capital is a long-term investor with no defined minimum or maximum holding period. We are flexible in determining the appropriate exit from each investment, whether it be a sale to a financial or strategic buyer, an initial public offering, or a dividend recapitalization. Friedman Capital is always mindful of the interests of our co-investors when deciding the appropriate time and form of exit.