Thursday, January 12, 2012


"I am so tired of reading about Romney/Bain bashing. If you don't know what venture capitalists and private equity firms do, then inform yourselves, after all, you claim to be a capitalist."   That was a recent quote I posted on my facebook page for which I received several positive comments. However,  since then the rhetoric such as vulture capitalist keeps coming up as well as false information on various websites and blogs. One such article can be found in the following link:

 Meanwhile Ricky Perry, who just can't stop attacking Mitt Romney on this issue is losing a very big donor who is now siding with the Romney camp.  Newt Gingrich is losing it.  I would have never thought that a man as smart as he is, would lose control like he did.  He has shown me a side of himself that prompted me to no longer consider him for President.  The same goes for Rick Perry.

I was appalled that the American Thinker would let an article such as the above one go out and forwarded it to my son who is directly involved with Private Equity firms.  He wrote the following  true accounting of what really goes on inside a company like Bain.  Please feel free and share this info, as it appears the majority of American people have no idea,  and the garbage the media is feeding us doesn't help. 

"The author of the American Thinker article is the hypocrite and horribly mistaken. Although he spells out what a venture capitalist is, he miserably fails in categorizing Romney and Bain capital as vulture capitalists. That term certainly exits, but is geared for the Carl Icahn's of the world aka - corporate raiders. Sure, we have corporate raiders and firms geared in this country that specialize in profiting on declining performance, and guess what, they have a right to invest the way they do and its legal and part of our great capitalistic economy. Bain Capital is a firm that targets and seeks to acquire and own majority control of good companies historically that are either being poorly managed, have been impacted by changing market conditions or regulations, or they see an opportunity to significantly increase the profitability and growth of the business. Its called "private equity", and not once over the last week has anyone come out and given an accurate description to who Mitt Romney is as a business man or Bain Capital. They are Private Equity Investors, not venture capitalists or vulture capitalists. In fact, I don't think I have even heard the term "private equity" on the airwaves, including Fox News. This clown along with bigger clowns like Rick Perry and Newt Gingrich think that you are either a venture capitalist ("good) or vulture capitalist ("bad"). It's appalling that trusted news sources can't even do enough diligence to understand what they are talking about before they start meddling in an industry they know nothing about or the other Republican candidates for that matter. Bain Capital owns companies like Toy's r Us, Dunkin Doughnuts, Dominoes Pizza, The Weather Channel and many more. They have no interest in raiding the company's profits and selling them off in pieces and destroying the companies. They are trying to make them better, increase revenues, create growth and opportunity, while maintaining fiscal discipline of the company. Sounds like exactly what this country needs right now.

In fact, I find it quite ironic that our government that took control of General Motors brought in a board and executive team lead by Dan Akerson that are primarily all former private equity investors. But hey, I guess these guys don't know what they are doing or know how to fix great companies and create jobs."
The following is a link to Bain Capital, the company Mitt Romney founded.
" Established in 1984, Bain Capital is one of the world's leading private investment firms managing approximately $60 billion in assets under management. Our affiliated advisers make private equity, public equity, leveraged debt asset, venture capital, and absolute return investments across multiple sectors, industries, and asset classes. Since our inception, our competitive advantage has been grounded in a people-intensive, value-added investment approach that has enabled the firm to deliver industry-leading returns for our investors."

 I would like to add that Bain or any other private equity firm has a fiduciary duty to pay their investors when the company makes a profit.  That is the way capitalism works.  If that investor was from overseas, then that's where the profit to that investor goes.  Lets not forget that many type of government agencies also used Bain etc. to invest their money in.

A little tidbit about Mitt:   Since 1999, when Romney entered public life, taking over the troubled operations of the 2002 Salt Lake City Olympics, and later as Governor of Massachusetts, he has donated his public service salaries to charity.


1 comment:

  1. OK,my friend, then who to you suggest? I'm for anyone but Obama, and I firmly think that we better stop eating our own.