Under Romney, Bain Generated Major Gains and Some Busts, WSJ Says; Plus “When Mitt Romney Came to Town” Video
Romney, who founded Bain Capital in 1984 and is the former governor of Massachusetts, is expected to win easily tomorrow in N.H. With such a large lead, the Bain founder has a bull’s-eye on his back, which makes for some interesting news.
First up is the Wall Street Journal, which analyzed 77 businesses that Bain Capital invested in under Romney’s tenure from 1984 through early 1999.
The Boston PE firm generated about $2.5 billion in gains for investors from the 77 deals, on $1.1 billion invested, the WSJ says. Bain produced roughly 50% to 80% annual gains during this period, which the WSJ says is among the best for buyout shops during that time.
Most of the gains came from a small number of deals. In fact, 10 deals generated “more than 70% of the dollar gains,” the WSJ says. But some of these top companies later ran into problems; four later landed in bankruptcy court, the WSJ says
Of the 77 companies analyzed, 22% crashed and either filed for bankruptcy or shut down eight years after Bain invested. Another 8% “ran into so much trouble” that Bain lost all their money, the story says. A Bain spokesman called the WSJ story “inaccurate and misleading.”
Next up is this scathing video from Winning our Future (which endorses Newt Gingrich). The video, “When Mitt Romney Came to Town,” says it looked at “four of Romney’s many targets” and the “thousands of employees who worked there.”
“And that hurt so bad to leave my home because of one man who’s got 15 homes,” says a woman in the video.
“I feel that is the man who destroyed us,” another woman is heard saying of Romney.