Dividend Recaps and IPO Proceeds - The Untold Story of Bain Capital's Financial Success

Posted: 11 Jan 2013

See all articles by Sven Furth

Sven Furth

Goethe University Frankfurt - Chair of Banking and Finance; Goethe University Frankfurt - Faculty of Economics and Business Administration

Christian Rauch

American University of Sharjah

Date Written: November 01, 2012

Abstract

The presented study shows how Bain Capital and other Buyout Investment Firms applied Dividend Recap Schemes to financially benefit from their portfolio companies. The so generated distributions represented a large portion of the overall financial success from these investments. Although these schemes made the investments highly profitable for the buyout funds and their investors, it can be assumed that the involved portfolio firms were financially hurt in the process. This study is the German-text version of the corresponding English-version of the study, publihsed under the same title.

Note: Downloadable document is in German.

Keywords: Buyouts, LBOs, Bain Capital, Mitt Romney, Dividend Recaps

JEL Classification: G30, G32, G34

Suggested Citation

Furth, Sven and Rauch, Christian, Dividend Recaps and IPO Proceeds - The Untold Story of Bain Capital's Financial Success (November 01, 2012). Available at SSRN: https://ssrn.com/abstract=2199215 or http://dx.doi.org/10.2139/ssrn.2199215

Sven Furth

Goethe University Frankfurt - Chair of Banking and Finance ( email )

Grüneburgplatz 1
P.O. Box 11932
Frankfurt (Main), 60323
Germany

Goethe University Frankfurt - Faculty of Economics and Business Administration ( email )

Grueneburgplatz 1
Frankfurt am Main, D-60323
Germany

Christian Rauch (Contact Author)

American University of Sharjah ( email )

P.O. Box 26666
University City
Sharjah, Greater Dubai Area
United Arab Emirates

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