Forstmann & Co. Inc. is a merchant bank whose goal is to identify and invest early in companies participating in large magnitudes of change.
"The entrepreneur as a creator of the new and a destroyer of the old, is constantly in conflict with convention. He inhabits a world where beliefs preceded result, and where the best possibilities are usually invisible to others. His world is dominated by denial, rejection, difficulty, and doubt. Although as an innovator, he is increasingly imitated when he is successful, he always remains an outsider to the “Establishment”. He is usually found to be disturbing and irritating, even unemployable for the most part. Yet ideas and dreams of his become the new reality in an ever-changing world surrounding us. If he ever knew the friction and hurdles, he would endure, he might never have ventured. But then venturing is grappling with the unknown well."
J Anthony Forstmann, Theodore Forstmann & Nick Forstmann
Forstmann & Co. Inc. is a merchant bank whose goal is to identify and invest early in companies participating in large magnitudes of change. A highly diverse, creative and experienced management team built this merchant bank for the benefit of its investors and business partners.
Some of the first banks operated as merchant banks. In the 17th Century, banks bought crops from Italian farmers and sold them at a profit. Farmers could make more money by increasing food production to sell to the banks, which created a loop that benefited both parties. It was a simple business conducted on a bench in a town square where all participating parties had similar interests.
Banks have evolved over time. Today, banks like Hedge Funds, LBO Funds, Venture Funds, Real Estate Funds, Commodity Funds, Family Offices, Wealth Management Departments are fee-driven, with little risk assessment. While Merchant Banks have also changed over time, having alignment of interests for all parties is still at the heart of the business.
A true merchant bank must have
complete alignment of interests for all parties.
Forstmann Leff Associates was founded in 1967 as a private incentivized firm by J. Anthony Forstmann and Joel B. Leff with the specific objective of managing other people’s money intensively for an above average rate of return. With the advice of Arthur Burns, a future Federal Reserve board chairman, they understood that the investment world would be dominated by an active Federal Reserve monetary policy.
The economy would not be determined by ordinary inventory cycles, but rather by the Federal Reserve’s active policies to undermine reckless congressional overspending on social issues and full employment. Monetary Policy, moving rates to dull the economy, would influence financial markets. Spikes in Federal Fund Rates would be used to suppress inflation and money supply would also be used as a tool to break the fiscal stimulus rendered by Congress. The savings function needed to adapt to a changing world- the active fed and monetarists- versus the political tide of enhancing entitlement programs and subsidizing unemployment.
Mergers & acquisitions, joint ventures, licensing & development
STRONG GLOBAL ALLIANCES
Dynamic national & international resources & partnerships
Execution, strategy definition, corporate actions & asset allocation
J. Anthony Forstmann
May 22, 1938 - Jan 31, 2023
Mr. Forstmann is the founder, Chairman of Investment Committee, Chairman, and Managing Partner of Forstmann & Co. He provides leadership, strategy and guidance for the firm’s overall decisions.
Mr. Forstmann founded Forstmann-Leff & Associates in 1967 and served as investment advisor to pension funds that became the second original hedge fund in the US. By 1985, the firm managed over $5 billion assets.
Notable assets under managements were: Intel, Pfizer, Standard Oil of Indiana, The Pension Guarantee Corp, The Ford Family, Northrop, Honeywell, Lockheed, Northwest Airlines, Knight Ridder, Delta Airlines, Texas Instruments, Raychem, Studebaker, Chrysler, Commercial Credit, MCA Universal, the City of New York, the State of Minnesota, the State of Maine, Holy Cross University, and the Archdiocese of New York.
Forstmann-Leff & Associates achieved an average compounded yearly gain of 22 percent on the investment partnerships. Forstmann-Leff & Associates outperformed all of other firms monitored by Investment Manager Profiles in the Balanced Account category. Forstmann-Leff & Associates was one of the nation's most prosperous investment firms, with a consistent, long term performance record that is still unmatched by any other financial firms.
In 1975, he continued his career as one of the founding members and an original investor in Forstmann Little & Co. This firm was one of the first to leverage buy out and private equity firms in the US, later to become one of the largest financial firms globally.
Mr. Forstmann served on the Board of Directors of companies such as Pullham Companies, HSN, Community Health Services, ABC Citadel Broadcasting. Mr. Forstmann is a graduate from Yale University and Columbia Business School and serves on the Leadership Council for the Yale School of Public Health.
Mr. Mooney serves as the Chief Financial Officer for the Company. He oversees the Company’s financial operations, including accounting, budgeting and financial reporting, as well as participates in key strategic initiatives for the Company.
Mr. Mooney has worked with businesses ranging from start-ups to multi-billion-dollar international corporations. He has served as a CFO for multiple private equity-backed businesses in the software and retail sectors and served as CFO for a start-up in the education industry. As a private equity investor, he has sat on the board of businesses in the consumer products, businesses services, digital marketing and restaurant sectors. Mr. Mooney earned his Bachelors of Business Administration from the University of Notre Dame and his Masters of Business Administration from the Kellogg School of Management at Northwestern University.
Marcus J. Kwon
Head of Asia, Managing Partner
Mr. Kwon serves as a Managing Partner and Head of Asia for Forstmann & Co. and Forstmann & Co. Asia LTD. He has more than two decades of management experience with a track record of more than $20 billion in transactions during his professional tenure.
Previously, Mr. Kwon served as Senior Partner at KPMG Korea, and Head of Real Estate where he led his team in numerous headline transactions such as Homeplus M&A, KEB Hana Bank, GS Parnas M&A, and many others.
His team was awarded as the “Best Advisor of the Year in Korean Real Estate Industry” by EuroMoney for two consecutive years.
Prior to KPMG, Mr. Kwon served as a Managing Director for Macquarie Securities and managed critical real estate and general corporate transactions such as; Cheongjin District 5 office building, Yeouido Parc 1, Seoul Express Bus Terminal, and State Tower Namsan. Prior to Macquarie Securities, he was the Managing Director for CBRE Korea and Ssangyong E&C.
He received Bachelors and Masters degrees of Architectural Engineering from Yonsei University, as well as a Doctorate degree of Urban Planning from Yonsei University.
Keven H. Kim
President, Managing Partner
Mr. Kim has more than 20+ years of operations, executive management and advisory experience. Throughout his career, he has advised numerous businesses and C-level executives in the US and internationally. To date, Mr. Kim has managed and executed more than $900 million in global product and professional services revenues and successfully raised private investments for clients and assisted more than 30 companies. Mr. Kim’s competencies are but are not limited to: Technology, Finance, Real Estate & Development, International Trade, Contract Manufacturing, and Intellectual Property.
Mr. Kim serves as the President and Managing Partner at Forstmann & Co. Inc. He is responsible for operations, portfolio management, investor relations, business development, and is on the board of directors as well as the investment committee.
Prior to Forstmann & Co. Inc., Mr. Kim served as Executive Vice President of ETRI/Newracom a fabless semiconductor company with emphasis on the IEEE 802.11 industry with over 950 industry specific essential patents. The company is a spin-off from Electronics Telecommunication Research Institute (ETRI) under the Ministry of Information of Communication for the South Korean government. He was responsible for the company’s P&L, growth, HR, Investor Relations and Technology Advisory.
Mr. Kim also served as CEO of Bksems Co. LTD a contract manufacturer specializing in OEM/ODM services with over $5 billion market revenues. During the 9 years, he also served as Chief of Strategy for many of its clients and their international projects. Established in 1976 (S. Korea), appointed as one of the top tier1 contract manufacturers for Samsung Corporation. In 1996, the company was sponsored by the S. Korean government and Samsung to enter into China as one the very first S. Korean contract manufacturers in the city of Dongguan, China with further operation expansions in Weihai, Beijing, Hong Kong, Vietnam, Brazil, Czechoslovakia, Mexico and Indonesia. At its peak, the company produced approximately 70% of Samsung Electronics, Electro-mechanics consumer electronics and computer components (OEM/ODM). Clients include but were not limited to: (Dell, Compaq, HP, IBM, Creative, JBL, Sony, Panasonic, Apple, Harmon-Kardon, Digital-way, Benq, Arima, Toshiba, Hansol, Great Wall, and Agilent. Production facilities also provided services for the automotive industry with clients such as: Delphi, Toyota, Honda, GM, Carroll Shelby, and Peugeot, Bosch, Alpine, Garmin, Tom Tom, Woosung, Haier and many others, ranking the company a top 10 tier1 facility. Sub-production facilities provided soft-goods (cut&sew) OEM/ODM contract manufacturing services as well.
Additionally, under his leadership, the company provided LCD/LED display R&D, contract manufacturing for ODM/OEM clients, developed 3D display projection products, and launched commercial digital signage product and solutions. Clients include but not limited to: AT&T, Apple, Verizon, Kroger, 7 Eleven, JC Decaux, Korea Rail, Airports, QSR franchisors. Company developed one of the first real time satellite, internet and cellular connected content broadcasting systems and operated a 24/7 CDN data centers and managed third party nationwide on-site installation and maintenance service providers. Mr. Kim implemented complete end-to-end supply chain logistics routes to over 130 countries and implemented ISO, QS, TS16949, 14000, GMP quality control standards, ERP systems as well as six sigma lean manufacturing process.
Mr. Kim serves as Senior Advisor and executive management roles for companies. He is a partner in an architect and design firm PDI Design Group (www.pdidg.com), Design 360 Unlimited (www.design360unlimited.com) and currently serves as a Senior Advisor to FinTech software technology companies: Unified Signal (www.unifiedsignal.com), First Nationwide Payments (www.firstnationwidepayments.com) and LUX Financial (https://lux.partners). Mr. Kim also serves as Senior Advisor to EV Mode LLC (www.evmode.com) USA manufactured EV Vehicle Service Equipment manufacturer, maintenance and service provider. Mr. Kim attended UC Berkeley majoring in Psychology.
Jake J. Kim
Mr. J. Kim serves as a Managing Director of Forstmann & Co. and Forstmann & Co. Asia LTD. He has more than 10 years of transaction and management experience with a track record of more than $10 billion during his professional tenure.
Mr. J. Kim’s core competencies are Investment Banking, Principal Investment, Cross-border Transactions and M&A. Previously, Mr. J. Kim served as a Managing Director for KPMG S. Korea Real Estate, Finance, M&A, and Consulting.
Some of his notable transactions includes Dream Tower in Sangam DMC, Metro Tower, The-K Twin Tower, Haman/Mokcheon Homeplus logistic center, and GS Parnas M&A.
Mr. J. Kim served under KPMG audit team managing more than 10 major clients simultaneously. (Shinhan Card, Han Kook Capital, National Credit Union Federation of Korea, Nice Total Cash Management, Hyundai Heavy Industries, Roche Korea, Kukdong Oil/Chemical, Greenbytech).
He received his Bachelors of Business from Yonsei University and is a Certified Public Accountant (KICPA).
Tom E. Flanigan
Mr. Flanigan serves as a Senior Advisor to Forstmann & Co. Thomas E. Flanigan, the first permanent Chief Investment Officer of the California State Teachers' Retirement System (CalSTRS) since its creation in 1984, developed and built an investment structure which has served the fund as it has grown from $14 billion in assets in 1984 to $75 billion and over $200 billion currently. CalSTRS is the largest teachers' retirement system in the world, with a total of more than 525,000 members. Mr. Flanigan was involved directly in all levels of investment program development for CalSTRS, including investment policy formulation, strategic planning, long-term asset planning, tactical asset allocation applications and currency management.
As Chief Investment Officer, Mr. Flanigan worked closely with the 12 member CalSTRS Board, the California State Legislature and key Legislative committees to implement investment policies. He also worked with the State Superintendent of Public Instruction, the State Treasurer, the State Controller and the State Director of Finance, all ex-officio members of the CalSTRS Board. The investment management plan Mr. Flanigan developed for CalSTRS provided for a fully diversified approach, using domestic fixed income and equity strategies, as well as equity and commingled real estate, alternative investments and venture capital. To facilitate large and growing cash flow responsibilities, Mr. Flanigan and his team managed 75 percent of the portfolio internally, using indexed strategies. The remaining 25 percent was managed externally under active monitoring and performance evaluation by the 40- member CalSTRS staff. As of December 31, 1995, the 10-year annualized rate of return of the CalSTRS fund ranked in the top 20 percent of the Trust Universe Comparison Service (TUCS) peer group companies and its funding level as of June 30 1997 was 100% on an amortized basis as compared to 55% in 1985. Prior to CalSTRS, Mr. Flanigan served as Senior Investment Officer with the $22 billion New York State Common Retirement Fund, where he was involved in all facets of money management activities over more than two decades. In 1994, Mr. Flanigan created Thomas E. Flanigan Inc., a pension and investment consulting firm located in Sacramento, California. He holds a bachelor’s degree in Accounting and Economics from Siena College in New York and attended Holy Cross College.
John H. Myers
Mr. Myers serves as a Director of Investment Committee and Managing Partner of Forstmann & Co. Mr. Myers completed 38 years of service at General Electric, retiring in September 2006 as President and CEO of GE Asset Management (GEAM). At GEAM he was responsible for approximately $200 billion in assets under management for clients including GE’s pension funds, 401(k) plans, mutual funds and insurance companies as well as for more than 200 external institutional clients.
More than 80% of GEAM’s assets were internally managed with multi-strategy capabilities and a significant focus on alternatives. Mr. Myers’s GE career spanned 37 years beginning in 1970 at GE’s Financial Management Program, then offshore assignments in Germany and Italy, and returning to the US in GE’s operating businesses. In 1981, he was appointed Deputy Treasurer of the company, named a GE Group Manager of Finance in 1984, and joined GEAM in 1986 as Executive Vice President with responsibility for fixed income, private equity, venture capital and real estate. He was named President and CEO in 1996. After retirement from GE, Mr. Myers continued his interest in the investment business by joining Angelo, Gordon & Co. as a Senior Advisor and Partner and joining the Aurora Capital Group as a member of its Executive Board.
He is on the Board of Directors of The Pebble Beach Company and also serves on the Advisory Board of Academy Securities. Mr. Myers serves on several nonprofit boards including Damon Runyon Cancer Research Foundation, Wagner College Board of Trustees, BuildOn, Hospital for Special Surgery Spine Care Institute, the Diocese of Bridgeport Cathedral Elementary School Cluster and American Corporate Partners, a veteran mentoring organization. Mr. Myers was a Lieutenant in the U.S. Navy, and served two tours of duty in Vietnam as a Line Officer. Mr. Myers graduated from Wagner College with a B.S. in Mathematics.
Donald G. Petrie
Risk & Compliance, Senior Advisor
Mr. Petrie serves as a Senior Advisor to Forstmann & Co. Mr. Petrie is the founder and managing member of Royal Oaks Insurance Services LLC (www.royaloaksinsurance.com), an insurance risk management and brokerage firm. He has 25+ years of experience in providing risk and insurance brokerage services to mid to large sized companies and individuals. The brokerage services include a broad array of commercial insurance, including professional liability (D&O/E&O), media and cyber liability, construction, property, general liability as well as personal lines (home, valuables – fine art and auto) insurance. In addition, specialized life and health insurance services are offered.
Mr. Petrie has broad experience with representing real estate owners/developers by marketing and placing commercial property and liability insurance, including office, retail, manufacturing/industrial, warehouse, hotels, apartments, and condominium and mobile home parks. We have extensive experience with construction risk and insurance, including owner controlled “wraps” for high end residential properties, as well as commercial properties including, multi-family housing, retail, office, and hotels. He has also worked extensively with business executives and affluent clients to provide personal insurance services, including personal lines, fine art, life insurance and disability insurance.
Mr. Petrie understands the risks faced by investment fund managers, general partners, and board members. He can identify and explain risks and insurance coverages in a simple and clear fashion. Mr. Petrie has 25+ years of experience in the D&O/E&O marketplace, having served as special in-house legal counsel to a large national D&O program with $40 + million in annual premiums and 200+ annual claims. Mr. Petrie has been providing insurance brokerage and risk management services to investment fund managers for 19+ years. Having a legal (member of the Missouri Bar Association) and accounting background has been of great benefit when dealing with client’s financial officers and legal counsel, especially in construction projects, during takeovers/mergers and with professional liability risks. He has a unique ability to work with clients and their attorneys and CPA’s.
Nothing in the world can take the place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. The slogan "press on" has solved — and always will solve — the problems of the human race.