"Here’s how a private equity fund such as Bain Capital works: It picks a successful company and then takes it over with a leveraged buyout (LBO). The money borrowed from a bank to pay off the owner or stockholders does not become the debt of Bain Capital. It becomes the debt of the company that was taken over."https://sandiegofreepress.org/2012/07/how-mitt-romney-drove-...
- Buy company's and strip them and lay off workers
- saddle company with massive dept (leveraged buyout)
- extract large fees
- sell company at profit
Later, the company, weaked by dept often goes bankrupt.
http://www.motherjones.com/politics/2011/09/mitt-romney-bain...
"Here’s how a private equity fund such as Bain Capital works: It picks a successful company and then takes it over with a leveraged buyout (LBO). The money borrowed from a bank to pay off the owner or stockholders does not become the debt of Bain Capital. It becomes the debt of the company that was taken over." https://sandiegofreepress.org/2012/07/how-mitt-romney-drove-...