In his prime, Teddy Forstmann was a force in the private equity industry. But he was always overshadowed a bit by his archrival Henry Kravis, who is still going strong while Forstmann retired from the private equity (private equity news) world in 2004. Their most famous duel was chronicled in the classic Barbarians at the Gate, about the buyout of RJR Nabisco.

Forstmann was always a critic of modern private equity practices, such as the over-reliance on junk bonds and Kravis was always the assumed target. Now, however, Breakingviews suggests that KKR's (KKR news) desire to take a stake in Creative Artists Agency, the talent agency unit of IMG--the CEO and chairman of which remains Forstmann--is a hat tip of sorts. Forstmann has made IMG a huge success as a media and entertainment company.

That KKR thinks it can make money in the talent business that Forstmann has overseen is indeed interesting. It could come back to bite Kravis, however. Forstmann may well have the last laugh.  

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