Romney Campaign Hurting Vulture Capitalists: “Private equity is more lucrative when it’s kept quiet"

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.......the vulture capitalists are having their fee fees hurt because the Romney campaign is drawing attention to the way they do business and pension funds are now reluctant to give them money:

Romney Seen Costing Private Equity Fundraising

By Cristina Alesci and Devin Banerjee - Jan 27, 2012 6:43 AM PT

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Mitt Romney’s campaign for the Republican presidential nomination may be costing his private- equity backers a lot more than they bargained for.

Attacks by opponents portraying Bain Capital LLC, Romney and other buyout managers as corporate looters who enrich themselves at the expense of ordinary workers have put a spotlight on the industry that will affect negotiations about future investments, according to officials and trustees at public pensions. As firms struggle to raise funds, pensions may be more reluctant to commit money and may ask for more details on job creation and push for lower fees, these officials said.

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The debate is affecting private-equity managers, including Romney’s former firm, Boston-based Bain Capital, as they’re competing for a shrinking pool of investor dollars. Fundraising slowed in the third quarter to the weakest pace since before the global financial crisis and stayed near that level in the final three months of the year, according to London-based researcher Preqin Ltd.

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“We all know that private-equity managers make a lot of money and we know how they do their business, but when it’s on the front page it causes us to think twice when making investment decisions,” Atwood said. “Private equity is more lucrative when it’s kept quiet.”

more:
http://www.bloomberg.com/news/2012-01-27/romney-seen-costing-private-equity-as-pensions-warn-of-backlash.html

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