How Would Obama Do at Bain Capital?

June/02/2012 16:54PM
Write Comment
Please follow and like us:

        About Us

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 advisors 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.


Private equity firms must find companies that are in trouble, study the company, decide whether it can be fixed, then negotiate ownership equity. Then execute the strategy that was developed when the company was being considered as an investment. Sometimes that strategy might involve employee cutbacks if the management was running heavy on employee overhead.

Let’s see what Obama could do to demonstrate he could run Bain Capital. Let’s look at the Post Office. Could that be a Bain Capital equity partnership? Sure,  it’s a big customer base.  It’s very inefficient. It loses money because it is losing revenue. But, it keeps employees it doesn’t need, pays them too much, has benefits that are too generous, and doesn’t charge enough for non-first class mail. What has Obama done to fix the Post Office? Nothing.  Does he even care about the billions it loses every year. No.

Amtrak, there’s another place Obama could show some Bain-type leadership. Poorly run, inefficient, and  unprofitable, it’s a good place for a Bain-type turnaround. Is Obama addressing this. No, not interested.

How’s he doing with his investments where he is showing a glimmer of interest in doing something?

Those billions in solar, wind, battery plants, and electric cars. Not good. They are all unsuccessful, every one. What went wrong? The market doesn’t like his products. Despite all the help he has given them, they are too expensive, too poorly selected, or lack customer demand. Gee, there must be more to running Bain than firing people.

Wait, how many people did Obama fire or cause to be fired by the GM and Chrysler deals? All those dealerships that were closed. Those non-UAW workers who were let go, and unpaid suppliers who had to cut expenses. How’s that working out? Good for the new UAW owners, not so good for the America taxpayers. Bain investors were happy for the most part, they got nice returns on their investments. US taxpayers, who are the investors in GM and Chrysler, not so good. Need a lot of stock price increases just to break even.

You see, Mr. President, you are quick to criticize Romney’s work at Bain, but based on your Bain opportunities as president, he looks good, very good. By comparison, you would have run your Bain-type investments out of business by now and would find it hard to get new investors to jump in and bail you out.

Of course, at your Bain, you just have the IRS tell us we need to invest more even though we have little, if any confidence, in your leadership or ability to run this little business called the United States of America. Face it Toto, you’re not in Chicago anymore, community organizing.

Please follow and like us:

Other Articles You Might Enjoy:

Leave a Reply