The Cypress Group

Founded in 1994, The Cypress Group was established by four senior members of Lehman Brothers merchant banking group following the departure of Pete Peterson and Stephen Schwarzman. During the late 1990s and early 2000s, the firm rose to prominence as one of the largest U.S. private equity firms, raising two major funds totaling approximately $3.6 billion.

The firm focused on an industry-based investment strategy, managing portfolios in sectors ranging from aerospace and automotive to healthcare and consumer products. Despite its early success, Cypress faced challenges in the mid-2000s due to a series of weak investments and the loss of senior investment professionals.

By 2007, the firm abandoned plans for a third fund and began an orderly wind-down of its operations. As of 2009, the firm entered negotiations with investors to manage the remaining portfolio as the original ten-year term of its second fund reached its conclusion.