Forstmann Little & Company

Founded in 1978 by brothers Ted and Nick Forstmann alongside Brian Little, Forstmann Little & Company became a titan of the private equity industry. The firm was best known for its focus on leveraged buyouts and its public rivalry with KKR, most notably during the bidding war for RJR Nabisco in 1988. Over its history, the firm completed more than 30 acquisitions, returning over $14 billion in profit to its investors through successful deals such as Gulfstream Aerospace and Dr Pepper.

During the late 1990s, the firm shifted significant focus toward the technology and telecommunications sectors. This strategy led to substantial losses following the bursting of the dot-com and telecom bubbles, resulting in high-profile failures like McLeodUSA and XO Communications. These losses eventually led to a landmark legal settlement with the state of Connecticut over investment negligence.

Following the death of the last surviving founder, Ted Forstmann, in 2011, the firm began a formal wind-down process. Its remaining major assets, including the talent agency IMG and the gym chain 24 Hour Fitness, were sold off for billions of dollars. The firm officially closed its doors in May 2014, marking the end of one of the most influential eras in private equity history.