Sunday, January 15, 2012

Bain Capital's Investments: 1984-1999

DB Alex. Brown via the Los Angeles Times:
This private prospectus was developed by Deutsche Banc Alex. Brown in 2000 for those who could invest a $1-million minimum in Bain Capital funds. It includes the investment history of Bain Capital from 1984 through 1999, most of the years that Romney ran the firm. After obtaining the prospectus, the Los Angeles Times asked Stanford University economics lecturer Alex Gould to review and interpret the document. Gould is a research fellow at the Stanford Institute for Economic Policy Research and has experience in the world of private equity and venture capital investing. The prospectus, annotated with his comments, appears below...MORE
HT: The New Yorker who writes:
...The prospectus listed sixty-eight companies that Bain Capital’s private-equity funds invested in between 1984 and 1998. It said the funds made an annual return of eighty-eight per cent, which means they almost doubled their money every year. On “realized investments’’—companies that Bain Capital had sold or taken public in an I.P.O.—the investment funds did even better. Over this fifteen-year period, according to the prospectus, the realized investments generated an astonishing annual return of a hundred and seventy-three per cent....