Dividend Recaps and IPO Proceeds - The Untold Story of Bain Capital's Financial Success

Abstract

The presented study shows how Bain Capital and other Buyout Investment Firms applied Dividend Recap Schemes to financially benefit from their portfolio companies. The so generated distributions represented a large portion of the overall financial success from these investments. Although these schemes made the investments highly profitable for the buyout funds and their investors, it can be assumed that the involved portfolio firms were financially hurt in the process.