let
q are running video has emerged
this apparently was given to m
mother jones i guess it was
from the
c_d_-rom
you can believe it
yes
from a uh...
begins in nineteen eighty-five or ordinarily geserum
yeah there was a c_d_-rom included in nineteen ninety eight to mark the
twenty-fifth anniversary of bain and company
and it included a video from nineteen eighty five
which uh... ronnie is describing pains formation
showing how he viewed the firm's mission
interesting stuff in this social it take a listen to it let's play that now
bain capital is an investment partnership
which was formed to invest in
startup companies an ongoing companies
then to take an active hand in managing them
and hopefully five to eight years later to harvest them in a significant profit
the fund was formed on september thirtieth of last year has been about
ten months now
i was born with thirty seven million dollars in invested cash
an additional fifty million or so uh... what i'll call it call pool
which is money we can call upon if the deals are large enough that they require
more than a two or three million dollar initial investment why in the world of
any company get involved
uh... in this kind of a business were not particularly noted for having years
and years of experience
in financing
three reasons
we recognize that we have to potential
to develop a significant and proprietary flowed business opportunities
secondly we had concepts an experience
which would allow us to
identified potential value and hidden value
in a particular investment canada and serve
we had the consulting resources and management skills and management
resources
to become actively involved in the companies we invested in
to help them realize their potential value
okay now
i want a break this down a little bit here because
it is possible to listen to what he's saying here
and make it sound like the really want to comment and turn these companies
around
but i understand that their expertise
was not in
making steel
or in
uh... making some ant
or in making textiles
or in all of these different types of businesses that's how calm that they
were able to do this
what their skill wise
was just a centrally
management
and consulting of managers
or rather
management flawed
when he talks about investing startup in managing
he's not talking about
we have uh... a skill set in terms of production or this that is going to help
these companies
what they are looking at when they see this uh...
hidden value as you referred to
was basically
the capacity to lar top companies
via their proprietary flow of business opportunities
there's nothing proprietary about knowing how to maximize
the efficiency of our company
to produce a product there's no there's no proprietary system there
you know i guess i guess you're henry ford when you realize i think maybe if i
specialize my workers in this way
no but there are proprietary
uh... vehicles in which you can create financial instruments
which you can create so that you can harvest
profits from these companies
and that is basically we've figured out that you can lard up these companies
we can get substantial tax benefits from that
we can get management fees from telling them to do this
then we can also turn that debt into profit
but then walk away from that debt in a bring cups a proceeding
and not have it be our bankruptcy but that companies bankruptcy
basically we can come in like pod people take over the host body
strip it of all of the two organs and its harvest its organs if you will
walk away with their organs
and their precious bodily fluids
and then just leave the carcass to basically imploding collapse
that's what he's describing there
that's what he's describing
his brain did not have
a raft of people like
a warehouse four people are getting galina bullpen
that's jim over there
he's our expert in uh... in and steel production
that's uh... that's mary
she's our expert in
uh... in transportation
now they just had
experts who are experts
financial instruments
transactions between banks and investors
probably a couple other it into the finger to bob becker six
and securities laws connects basically
so there's mit romney
as if that's going to make that much of a difference anyways
but