In 1983, Bill Bain asked Mitt Romney to launch Bain Capital, a private equity offshoot of the successful consulting firm Bain & Company. After some initial reluctance, Romney agreed. The new job came with a stipulation: Romney couldn’t raise money from any current clients, Bain said, because if the private equity venture failed, he didn’t want it taking the consulting firm down with it.
When Romney struggled to raise funds from other traditional sources, he and his partners started thinking outside the box. Bain executive Harry Strachan suggested that Romney meet with a group of Central American oligarchs who were looking for new investment vehicles as turmoil engulfed their region.
Romney was worried that the oligarchs might be tied to “illegal drug money, right-wing death squads, or left-wing terrorism,” Strachan later told a Boston Globe reporter, as quoted in the 2012 book “The Real Romney.” But, pressed for capital, Romney pushed his concerns aside and flew to Miami in mid-1984 to meet with the Salvadorans at a local bank.
It was a lucrative trip. The Central Americans provided roughly $9 million — 40 percent — of Bain Capital’s initial outside funding, the Los Angeles Times reported recently. And they became valued clients.