Private Equity · Profile from Private Equity Research Companion
Forstmann Little & Co. (1978–c.2014)
Status (2026): Inactive. The firm stopped raising flagship funds after its late-1990s vintages, was crippled by the 1999–2002 telecom losses and the Connecticut pension lawsuit, lost its founder Ted Forstmann in November 2011, and effectively wound down after selling its last major portfolio companies — IMG (to WME/Silver Lake, 2013–14) and 24 Hour Fitness (to AEA/OTPP/Fitness Capital, May 2014). Over its life, Forstmann Little completed 30+ acquisitions and investments and is credited with generating more than $14 billion of profits for investors (per firm-level figures cited in public histories).
14 deals and moves analysed
Each one gets a full strategy file in the companion: context, the decision, the financing, what happened, and the lesson.
1984
Dr Pepper
Take-Private / Break-Up LBO
1984
Topps
Management Buyout / Take-Private
1985
Revlon
White-Knight Buyout Bid
1986
Lear Siegler
Take-Private and Break-Up
1990
General Instrument
Take-Private / Turnaround
1990
Gulfstream Aerospace
Corporate Carve-Out Buyout
1994
Ziff Davis
Buyout and Quick Flip
1996
Community Health Systems
Take-Private and Re-IPO
1998
Yankee Candle
Founder Buyout / Recapitalisation
1999
McLeodUSA
Minority Growth Investment in a CLEC
2000
XO Communications
Minority Growth Investment
2001
Citadel Broadcasting
Take-Private and Re-IPO
2004
IMG
Founder-Estate Buyout
2005
24 Hour Fitness
Secondary Buyout