In 1988, seven principals of The First Boston Corporation’s Management Buyout Group took the same entrepreneurial leap we had been advising our management team partners to take: We stepped out on our own.
In those days, the trend in private equity was toward short-term transactions and quick profits, often achieved through drastic cost-cutting at underperforming companies. We set a very different course. We decided to focus our investments on what truly makes a company successful, and ensures its long-term value: the managers who run it. Some 30 years and 80+ transactions later, we are still doing it the same way.
Our original team of seven has grown substantially over the years. Four of the seven founders continue to manage the firm, and our founding principle—invest in management—continues to guide every transaction.