Vulcan nabs Forstmann pro

The private equity division of Paul Allen-backed investment group Vulcan Capital has hired former Forstmann Little executive Geoff McKay.

Former Forstman Little general partner Geoff McKay is to join Vulcan Capital’s private equity group.

At Vulcan, McKay, along with fellow managing director David Capobianco, will identify and oversee the private equity arm’s investments, the firm said in a statement.

“Geoff has a solid record of finding, managing and exiting investments that have generated excellent returns. His addition strengthens the team we have been building since 2004 and will enable us to build on the success we have achieved in that short time,” said Lance Conn, president of Vulcan Capital.

Prior to joining Vulcan’s private equity team, McKay spent seven years as a general partner with New York buyout firm Forstmann Little. Before that, he was an investment banker for Goldman Sachs Mergers & Acquisitions Group.

McKay’s is the latest in a string of executive departures from Forstmann Little, an exodus prompted by founder Ted Forstmann’s 2004 decision to discontinue fundraising and wind down the legendary firm. His resolution followed a $15 million settlement with Connecticut’s state pension fund; the payment settled a lawsuit regarding failed telecom investments that caused Forstmann funds to lose $1.5 billion.

Vulcan Capital’s past successes include investments in web and media companies such as Cnet, AmericaOnline and Priceline.com. The firm is the multi-strategy investment vehicle for Microsoft co-founder Paul Allen’s 21-year old management company, Vulcan.