The San Francisco-based firm is seeking more than $1 billion for its fourth fund, three of the sources said.
It’s unclear when it will officially come to market. MVision is the placement agent for the pool, two people said.
Friedman Fleischer’s third fund collected $1.5 billion in 2008, and press reports said the firm is aiming for the same amount for Fund IV. That is more than the firm’s second pool, which raised $811 million in 2004, according to the firm’s website. Tully Friedman, chairman and CEO, said at PartnerConnect West earlier this week that Friedman Fleischer is a “very slow investor.
“It takes us five years to invest a fund,” he said.
The fund is the first since Friedman Fleischer Co-Founder David Lowe left the firm in 2011. Lowe, along with Mel Deane, a former operating partner, has since launched Insignia Capital Partners, which invests in lower middle-market businesses. Insignia is also out fundraising for a pool that is reportedly seeking $350 million.
Friedman Fleischer focuses on middle-market companies, investing in sectors such as financial services, consumer and healthcare services by taking minority or majority positions. The firm has invested in Church’s Chicken, Wilton Re and Midwest Dental.
Officials for Friedman Fleischer and MVision declined comment.
Luisa Beltran is a senior reporter for peHUB