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Theodore J. Forstmann, a pioneer in leveraged buyouts and a major supporter of school voucher programs, died Nov. 20 at his Manhattan home. He was 71.
Known to his friends and associates as Ted, Mr. Forstmann created the business model for what became the private equity industry in the late 1970s, when he began using debt to acquire underperforming companies which his firm streamlined and sold for big profits.
Mr. Forstmann used his fortune to support charitable endeavors, giving hundreds of millions to programs he favored. He was particularly supportive of the school voucher movement, and in 1998 he founded the Children’s Scholarship Fund with John T. Walton, the son of Wal-Mart founder Sam Walton.
Since its inception, the fund has gone on to help almost 123,000 low-income children nationwide attend nonpublic schools, including many in Catholic schools, with scholarships worth $483 million. The New York City chapter currently supports more than 9,000 children in nonpublic schools in the five boroughs, with the vast majority in Catholic schools.
Born in Greenwich, Conn., Mr. Forstmann was a graduate of Yale and Columbia University Law School. He is survived by his sons, Everest and Siya; brothers J. Anthony and John; and sisters Marina Forstmann Day and Elissa Forstmann Moran. He was predeceased by a brother, Nicholas C. Forstmann.
A Memorial Mass was offered Nov 29 at St. Patrick’s Cathedral.
