What Forstmann Little & Co does

Forstmann & Co. Inc., doing business historically as Forstmann Little & Co., is a privately held merchant bank headquartered in Los Angeles (Century City) with Asia-Pacific operations conducted through Forstmann & Co. Asia LTD. The firm's lineage traces to 1967, when J. Anthony Forstmann and Joel B. Leff founded Forstmann Leff Associates as one of the first hedge funds in the United States following the AW Jones model. In 1975, Theodore Forstmann (with backing from Forstmann Leff) partnered with Nick Forstmann of JP Morgan and Brian Little of White Weld to form Forstmann Little & Co., the second LBO/private equity firm in the US. The firm executed more than 30 significant acquisitions through the late 1990s, including IMG, Gulfstream Aerospace, Dr. Pepper, 24 Hour Fitness, and Community Health Hospitals. In 2015, the firm was restructured under J. Anthony Forstmann's guidance into the current merchant bank structure.

Forstmann & Co. provides merchant banking services organized around three pillars: Growth Services (mergers & acquisitions, joint ventures, licensing & development), Partnerships (global alliances with sustainability focus), and Management Services (strategy definition, execution, corporate actions, asset allocation). The core technology is "merchant banking and investment management" — there is no software, API, or AI/ML product surface. Revenue is generated through investment management fees, carried interest on successful investments, and direct advisory mandates with institutional investors, primarily pension funds, insurance companies, major corporations, and government entities.

Go-to-market is exclusively enterprise field sales via direct institutional relationships — no broad marketing, no channel partners, no PLG motion. The historical client roster includes Intel, Pfizer, Standard Oil of Indiana, Ford Family, Honeywell, Lockheed, Northwest Airlines, Delta, Knight Ridder, Raychem, Chrysler, City of New York, State of Minnesota, and the Archdiocese of New York. Pricing and fee structures are not publicly disclosed. Senior leadership post the 2015 restructuring consists of President and Managing Partner Keven H. Kim, Head of Asia Marcus J. Kwon, Managing Director Jake J. Kim, and a senior advisory bench including the former first CIO of CalSTRS (Tom E. Flanigan) and former CEO of GE Asset Management (John H. Myers). Firm size is 11-50 employees; the founder J. Anthony Forstmann passed away on January 31, 2023.

Name

Forstmann Little & Co

Legal name

Forstmann & Co. Inc.

Website

https://forstmanncompany.com

Company type

Private

Founded year

1967

Operating status

Operating

Headcount range

11–50 employees

Short description

Forstmann & Co. Inc. is a privately held merchant bank delivering M&A advisory, joint ventures, partnerships, and asset allocation services to pension funds, insurance companies, corporations, and government entities, with US headquarters in Los Angeles and Asia-Pacific operations via Forstmann & Co. Asia LTD.

Ownership category

akta.pro rank

Product category

Merchant Banking & Private Equity

NAICS

Investment Banking and Securities Intermediation (52315)

SIC

Security Brokers, Dealers & Flotation Companies (6211)

akta.pro primary industry

Corporate Development & Strategic Partnerships Advisory (JVs, Alliances, Carve-outs) (BPAHAOAG)

akta.pro secondary industry

Strategic Partnerships, Alliances & JVs Advisory (BPAHADAI)

Keywords

• Merchant banking
• Leveraged buyouts
• Private equity
• Investment management
• Pension fund management

Headquarters

HQ city

New York

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Technology or R&D, Others

Revenue model

1. Investment Management and Merchant Banking: Forstmann & Co. generates revenue through investment management fees, carried interest on successful investments, and alignment of interests with external capital investors. The firm historically managed assets for institutional clients seeking above-market returns.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels1 record

Core offering

Forstmann & Co. is a merchant bank that identifies and invests early in companies participating in large magnitudes of change. It provides Growth Services (mergers & acquisitions, joint ventures, licensing & development), Partnership Services (global alliances and resources), and Management Services (execution, strategy definition, corporate actions, and asset allocation) to institutional investors, pension funds, insurance companies, major corporations, and government entities.

Product overview

Forstmann & Co. is a merchant bank offering a unified suite of investment and advisory services rather than a modular software product. The firm provides merchant banking services centered on identifying and investing early in companies participating in large magnitudes of change. Core offerings include: (1) Growth Services — mergers & acquisitions, joint ventures, licensing & development; (2) Partnerships — strong global alliances with dynamic national & international resources; and (3) Management Services — execution, strategy definition, corporate actions & asset allocation. The firm historically operated as a hedge fund (Forstmann-Leff & Associates, founded 1967) and later as an LBO/private equity firm (Forstmann Little & Co., founded 1975).

Differentiator

Problem solved

Functional benefit

Products and services

• Forstmann & Co. Merchant Banking Services Unified merchant banking offering that combines Growth Services (mergers & acquisitions, joint ventures, licensing & development), Partnership Services (national and international alliances and resources), and Management Services (execution, strategy definition, corporate actions, and asset allocation) for institutional investors, pension funds, insurance companies, major corporations, government entities, and educational/religious institutions.

Quantifiable outcome

• 22% average compounded yearly gain on investment partnerships - outperformed all other firms monitored by Investment Manager Profiles

Named customers20 records

Segments5 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

One partnership is on record.

• Arthur BurnsminorOthersArthur Burns, a future Federal Reserve board chairman, advised the founders on monetary policy and investment strategy, shaping the firm's understanding of active Federal Reserve monetary policy.

Scale indicators4 records

Recent moves7 records

Expansion highlights4 records

Broad incumbents

• Houlihan Lokey: Global investment bank specializing in M&A, capital markets, and financial restructuring advisory across corporates, financial sponsors, and government entities. Larger and broader than Forstmann & Co., but directly competes for similar advisory mandates.
• Jefferies: Full-service global investment banking and capital markets firm with a strong mid-market advisory franchise. Comparable as a financial advisory competitor but with significantly broader trading and capital markets capabilities than Forstmann & Co.
• Stifel Financial: Diversified financial services firm with a significant investment banking franchise serving mid-market corporates and institutional clients. Adjacent competitor for similar M&A and advisory mandates with much broader service mix.
• Lazard: Global financial advisory and asset management firm with deep roots in merchant banking and M&A advisory for corporates, governments, and institutional clients. Operates at significantly larger scale than Forstmann & Co. but shares the advisory-first, relationship-driven DNA.
• Rothschild & Co: Global advisory house built on the historic Rothschild merchant bank model, advising corpores, families, and governments on M&A, restructuring, and strategic advisory. Comparable merchant-bank heritage and alignment-oriented positioning, at materially larger scale.
• Piper Sandler: Mid-market focused investment bank providing M&A, equity capital markets, and fixed income services to corporates and institutional clients. Comparable in targeting middle-market and growth-oriented advisory mandates, though more product breadth.

Direct peers

• Moelis & Company: Independent global advisory firm providing M&A, restructuring, and capital markets advisory to corporates, governments, and financial sponsors. Closely comparable as a boutique merchant-bank competitor serving similar institutional and corporate clients.
• Allen & Company: Closely held private investment bank with a long-tenured model of advising families, founders, and corporates on M&A and strategic transactions. Highly comparable to Forstmann & Co.'s merchant-bank alignment philosophy and small, relationship-driven franchise.
• Cowen (TD Cowen): Boutique investment bank focused on M&A, equity research, and capital markets for growth-oriented and middle-market companies. Comparable as a boutique advisory competitor, now operating within TD's broader institutional platform.
• Perella Weinberg Partners: Boutique independent advisory and asset management firm built by senior partners from bulge-bracket banks, focused on M&A, strategic advisory, and capital solutions for corporates and institutions. Highly comparable boutique merchant-bank positioning with similar relationship-led go-to-market.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat4 records

Key risks5 records

Key highlights6 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles6 records

Subsidiaries1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments2 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Forstmann Little & Co