PE Giant Ted Forstmann Dies at 71

There are very few people in the business of finance whom I actually admire (conversely, there are dozens I downright loathe), and yesterday that list got a little shorter. Forstmann, Little founder and LBO pioneer Ted Forstmann died at age 71 from brain cancer. The man who coined the term "Barbarians at the Gate" was famous for being the lone voice of reason during the junk bond frenzy of the 1980's.

Ted Forstmann had a wild ride. From financing law school with gambling winnings to turning around multi-billion dollar companies to waking up next to models, actresses, and even a princess, Ted made it all look easy. And through it all he maintained his principles, never yielding to the quick buck that took down so many of his contemporaries.

He never married. (I'm pretty sure there's a Pro Tip somewhere in that last sentence.) But he adopted two boys from South Africa and raised them as his sons. He gave hundreds of millions away to various charities, and even signed the Giving Pledge earlier this year, promising to give away half or more of his total net worth upon his death. His support for charter schools and education reform was his passion, and the fund he started with $50 million of his own money has since provided $443 million in scholarships to underprivileged kids.

In short, Ted Forstmann did it right. If you're looking for someone to emulate, you could do far worse. This was a guy who got it done, but never lost his love of a good time. His funds returned a staggering 55% annual average from the late 70's to 2001. He spent the past seven years as the Chairman of talent juggernaut IMG.

Thanks to the movie, he'll always best be known for his rivalry with Henry Kravis of KKR over the RJR Nabisco deal. Who could forget David Rasche's performance of a manic Ted dressed up as an Indian desperately trying to woo Ross Johnson at a costume party?

We definitely lost another one of the good guys. And 71 seems far too young, though cancer does run in his family (his brother and co-founder of Forstmann, Little died of lung cancer at 54). I have no doubt that this man's funeral will be well attended.

Rest in peace, Teddy.