In '02, Bain invested in software development in China (Updated) By ALEXANDER BURNS <http://www.politico.com/reporters/AlexanderBurns.html> | 7/16/12 3:18 PM EDT
An arm of Bain Capital invested $4 million in a software company that intended to expand its operations in China shortly before Mitt Romney became governor of Massachusetts, according to press reports from the time. According to a September 2002 article in Private Equity Week, Bain Capital Ventures directed the multimillion-dollar investment to E5 Systems Inc., an information technology startup that was looking overseas for opportunities to grow. The Private Equity Week story about Bains investment quoted E5 CEO Gordon Brooks cheering the new investment from Bain and others: We raised more than we set out to raise. In this environment you take the extra. It gives us multiple years of runway and the ability to develop our China capabilities, which we think is the next big outsourcing destination. The trade publication explained further: The Boston-based company will use the fresh capital to expand its off-shore centers and for general corporate purposes. The fall of 2002 comes at the very end of the disputed period in which Romneys political opponents are arguing he should be accountable for corporate decisions made at Bain Capital. Romney and his campaign have repeatedly noted that he gave up his management responsibilities at Bain Capital in 1999, when he went to take over the Salt Lake City Olympics. Bain continued to list Romney as the head of the firm and its principal owner in SEC documents until 2002, in what Romney aides call a pro forma measure until a new management structure could be finalized. Romney agreed to a retirement deal in 2001 that was signed in 2002, and retroactively set his departure date as February 1999. Romneys campaign has not described what, if any, contact the Republican had with the private equity company during the years between his appointment to the Olympics post and his election as governor. Still, Democrats have continued to argue that Romney ought to be held responsible for Bains actions during the time he was still listed as a top executive, and for decisions that could be viewed as the result of his actions as founder and CEO. Romney spokeswoman Amanda Henneberg dismissed the Private Equity Week story, reiterating the standard Romney campaign line that President Barack Obama is seeking to divert attention from his own economic record. Its ridiculous that the Obama campaign is trying to attack Mitt Romney for investments made years after he left to save the Olympics, but is working overtime to deny responsibility for the terrible economy he is presiding over today, she said. One Romney adviser, speaking anonymously, said the E5 investment took place well after the time [Romney] had any input into investments at Bain: He didnt have any involvement in this particular deal. A subsequent story in Computerworld gave additional details on the E5 deal in 2003, calling it part of a move toward entrusting application development work to China. Bain executive Dave Hamilton told the publication that cost was the only factor in the decision to invest in E5s Chinese development operations. *This item has been updated with additional information about the timeline of ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Order the Adobe Coldfusion Anthology now! http://www.amazon.com/Adobe-Coldfusion-Anthology/dp/1430272155/?tag=houseoffusion Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:352699 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/groups/cf-community/unsubscribe.cfm
