What part?


It's standard practice in the industry. When you buy a struggling company the first thing you do is load it up with debt to pay your fees and the cost of buying it.


Sometimes the company recovers, sometimes it goes under. Doesn't really matter. You got paid either way.

Romney was actually pretty rich the day he was born. A buddy of mine likes to call it being born on third base.

No I know how the practice works, I meant didn't only one of the companies they worked with go bankrupt?

DDI Corp.: Bain took the company public in 2000, reaping $36 million — but by 2003, DDI had filed for bankruptcy protection and laid off 2,100 workers.

Staples: Bain Capital's first success was in 1986, when Romney agreed to a $650,000 investment in an office supply store, which eventually turned into an $18 billion company. When Bain sold its stake a few years later, it saw a nearly sevenfold return on its investment.

Domino's Pizza: Bain Capital's largest acquisition under Romney's tenure was its $188.8 million buyout of Domino's in 1999. The firm eventually reaped a fivefold return.

Between the firm's founding in 1983 and Romney's 1999 departure, Bain Capital became one of the top leveraged buyout firms in the country, acquiring more than 115 companies and averaging a spectacular 88% annual return.

If an investor could have put in the required minimum of $1 million when Romney started Bain in 1984, and left it there for reinvestment in successive Bain funds until Romney departed in 1999, the investment would have grown to over $12 billion.

Yes, not every company made it through the process.

I am not sure how I feel on Bain.

He did a great job running it, and the company was very profitable.

He was successful in turn arounds more often than not but still people lost jobs when it didn't work.

 

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Well most of those people would have lost their jobs either way. So that angle doesn't bother me so much.


But the whole business was very much based on loading companies up with debt while extracting huge fees. So I don't think it is a great profile for someone arguing he should be elected so he can stop us from loading ourselves up with debt.