Wincing from the slings and arrows thrown by candidates for the Republican presidential nomination, the private equity industry — in the guise of the Private Equity Growth Capital Council — is striking back.
Fellow GOP presidential nominee hopefuls are portraying former Massachusetts Gov. Mitt Romney and Bain Capital, the firm Mr. Romney founded in 1984, as slash-and-burn private equity investors. Even though Bain Capital is not a member of the council, the Washington-based trade and advocacy organization is speaking out to “set the record straight.” For example, net job loss at private equity portfolio companies from 1980 to 2005 was less than 1% of initial employment, according to a recent working paper by the National Bureau of Economic Research, shared by the council.
“There is a lot of misinformation being spread,” during the primary campaigns, Steve Judge, interim president and CEO of the Private Equity Growth Capital Council, said in a statement in a response to the attacks on the industry.
“What's been lost is an understanding of the critical role that private equity investment plays in growing the U.S. economy and delivering more than $1 trillion in investment returns to pension funds, endowments and charitable foundations.”
The council plans to “aggressively defend the industry against any mischaracterizations regardless of the political affiliation,” Ken Spain, vice president of public affairs and communications, said in a separate written statement.