Bain defends record in letter to investors

Bain Capital, the global private equity manager and former firm of Republican frontrunner Mitt Romney, has argued its case in a letter to investors.

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Bain Capital, the global private equity manager and former stomping ground of Republican frontrunner Mitt Romney, has defended its record in a letter to investors. 

The firm was unwittingly dragged into the political mudslinging surrounding the race for a new Republican leader, as rival Newt Gingrich accused Romney of paying light taxes and culling jobs at investee companies while at Bain in the 1990s. 

Until now, the media-shy firm has kept its head down, but yesterday dispatched a letter to investors addressing the fervent press speculation that surrounded Gingrich's accusations. 

“Mark Twain’s famous witticism, ‘Get your facts first, and then you can distort them as much as you please,’ has unfortunately become a hallmark of today’s political process,” the letter reads. 

It goes on to highlight that Bain has profited through growing revenues at investee companies by a total $105bn (€80.4bn) throughout its 28-year history. 

The biggest charge directed at Bain is that it oversaw job destruction in its portfolio while under Romney's watch. 

While the letter acknowledges that it's difficult to accurately put a number on job loss and creation, it says that its turnaround activity has rescued jobs and that less than five per cent of target companies have filed for bankruptcy while under its control. 

"While not every business can be successful, any fair-minded assessment must also take into account the jobs preserved in the businesses that we have turned around, transformed and then grown," the letter said.

The rebuttal goes on to condemn “misleading quotes and cherry-picking off the record” and stresses that “there should be no doubt that $105bn of revenue growth is an economic engine with widespread benefits”. 

Bain has been involved in some of the most high-profile European private equity deals of recent years, buying stakes in former RBS payment processor WorldPay, NXP Semiconductors, food distributor Brakes Group and Swedish security systems firm Securtias Direct.

Picture: Source