Who is Bain Capital?
Headquartered in Boston, Bain Capital is known in the corporate buyout world for charging higher carried interest than average-30 percent rather than the standard 20 percent. Overall, its total assets under management were valued at $40 billion in 2007. Read more about Bain Capital at BehindTheBuyouts.org. Will our child care go the way of KB Toys? KB Toys went bankrupt less than four years after being bought by Bain Capital, shutting down hundreds of stores and laying off thousands of employees, yet Bain Capital got a reported $85 million return on its $18 million investment. Not only did the initial buyout include $237 million in debt, but the company went even further into debt to fund a “dividend recapitalization”—approximately $121 million in payments to Bain Capital and KB Toys executives. The Wall Street Journal’s Deal Journal describes dividend recapitalization: “Under this procedure, a buyout firm’s portfolio company takes on additional debt, which it then uses to pay its buyo
