Bain Capital

John Gapper

Mitt Romney’s presidential campaign has been a bit of a trainwreck for the private equity industry.

First, its image of being a bunch of ruthless asset-strippers has been revived by the Democrats (and even Romney’s Republican primary opponents) and now his tax affairs are casting a dark shadow.

As the New York Times reported this weekend, Eric Schneiderman, the New York attorney general, has launched a broad inquiry into whether private equity firms evaded tax by turning their 2 per cent management fees into performance fees, which are taxed at a lower rate. Read more