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Republican presidential hopeful Mitt Romney greets supporters after addressing a primary night victory rally in Manchester, New Hampshire, January 10, 2012.
At DealBook, Andrew Ross Sorkin talks to Paul Levy of JLL Partners and a self-confessed small-fry among the big fish of the private-equity world. As you probably know, in recent weeks, private-equity — the practice of buying struggling companies, usually with debt, taking them private, turning them around, and re-selling them — has taken a drubbing, based on the notion that successful PE guys, like GOP presidential candidate Mitt Romney, are Gordon Gekko-esque in their commitment to greed.
Levy thinks this is terrible. How terrible? It's nearing red-scare levels:
...Mr. Levy has been dismayed that the industry’s heavyweights have not sought to publicly defend their industry in recent days. Private equity came under attack when Mitt Romney’s political rivals put his career at Bain Capital in the spotlight as part of the Republican primary.
“There’s a tinge of McCarthyism here,” Mr. Levy said in an interview. “I think it’s a pretty honorable industry, and I don’t know why people aren’t stepping up and defending the careers that define their lives. That’s a sad thing. What do they fear it will cost them?”
Mr. Levy, who voted for President Obama in 2008, is right. Virtually none of the big names in private equity have spoken up to defend the industry. Over the past several weeks, anytime my colleagues or I have sought comment about attacks on the industry, private equity’s kingpins have declined. (The industry’s lobbying group, the Private Equity Growth Capital Council, has been working behind the scenes to shore up support and plans a more public campaign in the coming weeks, but with none of the leading private equity executives playing a significant role.)