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Forstmann's art collection reflects his investment legacy

Friday, April 27, 2012 - 03:39

Apr. 27 - Sotheby's will auction the art collection of legendary buyout pioneer Ted Forstmann in May. Insider takes a look at how his artistic style paralleled his investment strategy.

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Billionaire -- enforcement -- name for himself with a buyout king in the eighty's and ninety's but just financial deals that caught his side. Starting may auction house Sotheby's will sell pieces from sportsman's art collection. And his -- gives some insight in the investment style of the man who coined that term barbarians at the gate he was -- he was powerful. And he was colorful. Like this Picasso. The premier peace in his collection it's expected to fetch between twenty and thirty million dollars. He -- a collector with regard to his -- -- an auction was fierce competitor. And as far as I recall one never lost. -- certainly knew the art of making a deal. He felt the private equity firm Forstmann little in 1978. Making more than thirty high profile deals during his tenure and delivering 50% annual return to investors. Until his death late last year he worked as CEO at ING. The last major acquisition of his decades long career. Along the way he began collecting art. In 2004. At the same year he bought IMG he bought this routine for six point seven million dollars. It's expected to sell for between ten and fifteen million. He. Didn't look at all forma speculative perspective he just adored this picture and he disputed for a golf estimate and actual fight. But it turns out that doing that in 2004. Wasn't incredibly successful move from an economic perspective. I -- was a strategy that worked on the walls of his home and in the halls of his office. Horsemen look for long term appreciation for his investors. His first big deal for doctor pepper delivered more than eight times his return on investment. In just two years. And in the deal he's probably best known for horsemen saved Gulfstream Aerospace from the brink of bankruptcy. Installing himself as CEO and turning the company around. Ironically enforcement really made its reputation on a deal that never happened. In 1988 he failed in a bid for RJR Nabisco because unlike the eventual winner of rival KKR. He refused a pile on junk bond financing. He didn't think junk bonds has no money he called it swamp on more funny money. He thought it encouraged over bidding for companies to hand it over leveraging companies to the point where they would be in a position. Two years survivor of our economic downturn. Perhaps a console himself after losing the RJR bid forced then went on an artistic buying spree. Adding several new pieces to his collection including this narrow which is expected to sell for between ten to fifteen million dollars. He clearly steered clear of jumped in the art world too. I think what's interesting about enforcement collection is the way back. It reflects. Quite so strongly his own personality he was a perfectionist and a pioneer and everything that he did in the business world when he walks in the old world to. Enforcement like all the great artists had his uses he enjoyed the company of beautiful women including Padma Lakshmi. Elizabeth Hurley and Princess Diana. He certainly had good taste in -- tenacity to get what he won it forced and legacy in many ways was one of life imitating art. He liked to say that he was -- Picasso. And his other partners are hoping the latter. I'm Rhonda schaffler this is Reuters.

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Forstmann's art collection reflects his investment legacy

Friday, April 27, 2012 - 03:39