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To a large extent, however, this is simply the way private equity works, offering its practitioners myriad ways to extract income and limit their risk.
Let's move past them for the moment and instead try to understand exactly how private equity works and how Romney's experience would inform his presidency.
Miller says: "The way in which private equity works in relation to TMG and Emap is not unlike a mortgage on a house.
Sometimes, they get lucky by making a quick profit, but often private equity works to squeeze out inefficiencies and make operating improvements in companies and then takes them public a few years later.
"To illustrate how transparency in equity works, suppose a client places an order to buy a particular stock at careful discretion which is trading at 25. My trader goes into the market and executes it for 25.12.
First of all, you need a better, real-world understanding of how equity works.
Similar(52)
So they used sweat equity, working long hours for others and using most of their earnings to take working-interest positions in wells that were on the market at distressed prices.
"If you have the right team on the ground, you can make private equity work in just about any market".
O'Melveny & Myers, a large Los Angeles-based law firm, announced yesterday that it had acquired O'Sullivan L.L.P., a New York law firm specializing in private equity work.
The firm opened its Hong Kong office in 2006, and in October began adding to its practice there to meet increased demand from private equity funds in Asia, just as the market for private equity worked bottomed out in the United States.
Now that Mitt Romney, whose fortune came from his private equity work at Bain Capital, is set to accept the Republican presidential nomination next week in Tampa, Fla., the industry will certainly spend the fall in the spotlight.
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