Forstmann Little & Company

Founded in 1978 by brothers Ted and Nick Forstmann along with Brian Little, Forstmann Little & Company rose to become one of the largest private equity firms globally by the late 1990s. The firm was a pioneer in the leveraged buyout (LBO) industry, famously participating in the 1988 bidding war for RJR Nabisco and setting legal precedents such as the Revlon Duty. Throughout its history, the firm completed over 30 acquisitions, yielding more than $14 billion in profit for its investors.

The firm's investment strategy eventually shifted heavily toward the technology and telecommunications sectors, which led to significant losses following the bursting of the dot-com bubble. Notable failures included investments in McLeodUSA and XO Communications, the latter of which resulted in a landmark negligence lawsuit from the state of Connecticut. Despite these setbacks, the firm maintained high-profile assets including Gulfstream Aerospace and IMG.

Following the death of the last surviving founder, Ted Forstmann, in 2011, the firm began a structured dissolution 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 concluded its operations and closed in May 2014.