Forstmann Little & Company

Forstmann Little & Company was founded in 1978 by brothers Ted and Nick Forstmann alongside Brian Little. The firm became one of the largest private equity entities globally by the late 1990s, gaining significant notoriety for its participation in high-profile bidding wars, most notably the 1988 battle for RJR Nabisco. Throughout its history, the firm completed over 30 acquisitions and investments, generating more than $14 billion in profit for its investors through successful deals such as Gulfstream Aerospace and General Instrument.

The firm was known for its distinct investment philosophy, often avoiding the use of high-yield junk bonds that characterized many of its competitors like KKR. However, the firm faced significant challenges during the bursting of the internet and telecom bubbles in the early 2000s due to heavy investments in companies like McLeodUSA and XO Communications. These losses led to a landmark legal settlement with the state of Connecticut in 2002 regarding investment negligence.

Following the deaths of Brian Little and Nick Forstmann in the early 2000s, Ted Forstmann remained the sole leader of the firm until his death from brain cancer in 2011. Following his passing, the firm began a structured dissolution process, selling off its remaining major assets, including the talent agency IMG and the fitness chain 24 Hour Fitness. The firm officially closed its doors in May 2014 and was fully disestablished by 2015.