MacAndrews & Forbes

MacAndrews & Forbes is the private holding company of Ronald Perelman, one of the most prominent corporate dealmakers and acquirers of the late 20th century. Founded in 1978, the firm served as the vehicle through which Perelman executed a series of leveraged buyouts and hostile takeovers that defined an era of American corporate finance. At its peak, MacAndrews & Forbes controlled companies spanning cosmetics (Revlon), entertainment (Marvel Entertainment), defense (AM General), banking, and consumer products.

Investment Strategy

MacAndrews & Forbes operates as a holding company rather than a traditional family office or fund. The firm acquires controlling or significant minority stakes in operating businesses, holds them for extended periods, and manages them actively through board representation and strategic direction. This approach differs from passive portfolio construction; Perelman has historically been deeply involved in the governance and operations of his holdings.

The firm’s investment strategy has evolved significantly over the past decade. During the 1980s and 1990s, MacAndrews & Forbes was among the most aggressive acquirers in American business, using leveraged buyouts to take control of companies at favorable valuations. Perelman’s most famous acquisition, Revlon, was purchased in a hostile takeover in 1985 and remained a core holding for decades, though the company’s financial performance deteriorated in later years.

More recently, MacAndrews & Forbes has operated with a smaller portfolio and reduced leverage. Financial pressures during 2020 led to significant asset sales, including major art pieces, real estate, and business interests. Perelman sold works by artists including Joan Miro, Henri Matisse, and Alberto Giacometti, along with properties in New York, the Hamptons, and elsewhere.

The current portfolio reflects a more concentrated approach, with remaining interests in select operating businesses and financial investments. The firm’s investment activity has slowed from its peak but continues selectively in situations where Perelman identifies undervalued assets or operational turnaround opportunities.

Private Markets Approach

Private markets have always been the core of MacAndrews & Forbes’ activity. The firm’s historical portfolio reads like a survey of American industry: Revlon, Marvel Entertainment (acquired in 1989, taken through bankruptcy, and ultimately sold), AM General (maker of the Humvee), Panavision, Scientific Games, and dozens of other companies across multiple sectors.

Perelman’s approach to private markets is fundamentally that of a control investor. He acquires companies, installs management teams aligned with his strategic vision, restructures operations, and either holds for long-term cash flow or divests when valuations reach attractive levels. The Marvel acquisition and subsequent sale is perhaps the most illustrative example: Perelman acquired the company in 1989, navigated it through bankruptcy in 1996, and the intellectual property he helped restructure became the foundation of the Marvel Cinematic Universe.

The firm’s real estate holdings have also been significant, including a portfolio of residential and commercial properties in New York City that were selectively liquidated in recent years. Art collecting has been another form of private markets activity, with Perelman assembling a collection valued at hundreds of millions of dollars.

MacAndrews & Forbes does not operate a traditional private equity fundraising model. All capital deployed is Perelman’s own, giving the firm complete discretion over timing, sizing, and hold periods. This permanent capital structure allows for patient ownership but also concentrates risk in a way that became challenging during periods of financial stress.