An Olympian’s Gift for Business

Romney grew up in Michigan, where his father, George W. Romney, was elected governor in 1964 after a successful career as a businessperson.

As a teenager, Romney says he followed his father’s political career closely. In 1970, he helped his mother, Lenore, with her unsuccessful campaign for U.S. Senate.

A Mormon, Romney served his church mission in Paris and graduated in 1971 from Brigham Young University, then moved to Boston for graduate school, earning a joint degree from Harvard Business School (HBS) and the Law School.

After he left Harvard, he became vice president of the Boston consulting firm Bain & Co., and in 1984 Romney founded Bain Capital, the investment company that grew to local prominence under his leadership.

Romney is reported to be a sharp businessperson with a vigorous drive for success.

Robert C. Gay, managing director at Bain Capital, first met Romney when he was working at Boston Consulting Group, before going to HBS.

Gay went to work on Wall Street, but returned to Boston when Romney asked him to join Bain Capital as one of its first partners.

Gay describes Romney a bright and discerning business leader.

“His main role was to play the devil’s advocate,” Gay says. “If we were deciding to do an investment, he’d always be the person saying, ‘Should we do this?’ And if we didn’t, he’d say ‘Should we?’”

Romney’s firm was engaged in venture capital—investing in firms with good business concepts in hopes of gaining a high return—and leveraged buyouts—targeting undervalued companies, improving inefficiencies in their workforce, and selling the companies’ shares to reap profits for investors.

According to Gay, Romeny made Bain into a huge success, founding or buying out companies like Domino’s Pizza, Brookstone and Staples Inc.

“It was just a little firm when I got there,” Gay says. “When I walked in there were only about 12 of us, and we’d invested $35 million. Today we manage $15.5 billion. In 20 years, he organized that growth.”

But the real proof of Romney’s business ability, says HBS Dean and Romney’s close friend Kim B. Clark ’74, is his record as CEO of the 2002 Salt Lake Organizing Committee (SLOC).

Romney was called in to salvage an Olympics mired in scandal, after SLOC members were accused of using bribery to persuade the International Olympic Committee to bring the games to Utah.