Mitt Romney is an American businessman and politician who began his political career in the mid-1990’s. While he served as the 70th governor of Massachusetts from 2003 to 2007; he unsuccessfully ran for the Republican presidential nomination in 2008 – he lost to John McCain.
Nonetheless, he was the Republican nominee for the US President in the 2012 elections. As fate would have it, Romney lost to Barack Obama.
Mitt Romney’s Biography
Willard Mitt Romney was born on March 12, 1947, in Detroit, Michigan, where he was also raised as a member of The Church of Jesus Christ of Latter-day Saints (LDS Church). His father, George W. Romney rose to prominence in the late 1950’s as the CEO of American Motors who helped rescue the company from a financial crisis.
Following his popularity, George Romney got involved with politics and served as the governor of Michigan from 1963 to 1969. He also served as the United States Secretary of Housing and Urban Development from 1969 to 1973. Like his son, George unsuccessfully ran for Republican Party’s presidential nomination. That was in the 1968 election; he was defeated by Richard Nixon.
Meanwhile, Mitt worked in his father’s campaign team and had a brief stint as an intern in his office before leaving for France in 1966 on a Mormon missionary journey. After spending over 2 years in France, he returned to the US and enrolled at LDS Church-operated Brigham Young University, Utah from where he earned a BA in 1971. Subsequently, he attended Harvard and graduated in 1975 with a joint Juris Doctor and MBA.
Business and Career Beginning
Mitt Romney began his business career at management consulting firm, Boston Consulting Group. In 1977, he was hired by another Boston-based consulting firm, Bain & Capital. Mitt experienced rapid success at the firm and a year later, was named the firm’s Vice President. He became one of the firm’s leading consultants and was a top-preferred choice by clients.
Seven years later, in 1984, Mitt together with Bill Bain, raised $37 million to fund private equity investment firm named Bain Capital, a spin-off of Bain & Company. Romney served as the firm’s sole shareholder, managing general partner, CEO and president.
Bain Capital which initially invested in venture capital began making huge profits when they switched to leveraged buyouts. Going by the concept of leveraged buyouts, Bain Capital would buy a company with money borrowed from a bank using the company’s asset as collateral, while developing the company to increase its valuation enough to pay off the debt at which it was bought and also make huge profits for the firm. Bain Capital would then sell the developed company for much profit. This concept has been heavily criticized for its role in laying off workers.
The effective execution of this method soon made Bain Capital America’s leading investment firm. By 1999, Bain Capital had about 18 partners and 115 employees with over $4 billion under its management. The firm also made an annual average return of 50-80% to its investors. They were involved with companies in the medical, industrial and entertainment sector including Brookstone, Sealy Corporation, and Accuride Corporation.
Between 1991 and 1992, Romney returned to Bain & Company to serve as CEO and save the firm from the brink of bankruptcy. At the time, he also remained the managing director of Bain Capital. He left Bain Capital in 2002 to focus on another task. However, while relinquishing his managerial roles, he negotiated a deal that entitled him a share of profits made from some entities. This sees him earn an average of $20 million annually as a retired partner.
Mitt Romney first dabbled in politics in 1994 when he stepped down from his position at Bain Capital to run for Massachusetts Senator. However, after he lost to incumbent Ted Kennedy, he immediately returned to his roles at Bain Capital.
After leaving Bain Capital in 2002, Mitt accepted a job offer to become the CEO and President of Salt Lake Organizing Committee for the Olympic and Paralympic Winter Games of 2002. The committee was at the time plagued by corruption and was running short of its revenue goals. Romney donated $1 million of his own money to the organization and donated his 3-year salary of $1.4 million to charity. Under Romney’s helm, the organization made a huge financial turnaround and even recorded a surplus of $100 million after the games ended. He penned his experiences into the book “Turnaround: Crisis, Leadership, and the Olympic Games” published in 2004.
Romney’s impressive success at the committee brought him much acclaim and his experience helped him relaunch his political career. He successfully ran for Governor of Massachusetts and served for a single term where he rejected the $135,000 salary.
However, since opting instead to run for president in 2008 rather than a gubernatorial rerun, Romney has never held any political office but continues to be active behind-the-scenes, endorsing and raising funds for Republican candidates. In 2016, US president-elect Donald Trump considered Romney a candidate for Secretary of State.
Mitt Romney Wife And Children
Romney has been married to Ann Romney since 1969 and both share 5 sons including Tagg Romney, born 1970 who follows in his father’s footsteps as a consultant, businessman and political advisor; Matt Romney, born 1971; Josh Romney, born 1975; Ben Romney, born 1978 and Craig Romney, born 1981.
Prior to the 2012 presidential elections, it was revealed that Romney has a $100 million blind trust named after his children.
What Is Mitt Romney’s Net Worth?
Romney’s net worth of over $250 million emanates from his successful business career as the CEO of Bain Capital. This includes his and his wife’s retirement account, worth between $20 and $100 million.
Considering his prowess in business, it’s no surprise how much Romney has invested in real estate. He has several homes scattered across the country including his Belmont, MA Mansion – a 7-bedroom, 6.5-bath home purchased with his family in 1989 (five years after he founded investment firm Bain Capital). While it was purchased at $890,000, the Romneys’ home sold for $3.5 million in 2009.
Beyond that, there are Wolfeboro, NH Compound – a 3-storey, 6-bedroom summer home bought in 1997 at $3 million; La Jolla, CA Beachfront Property which cost $12 million and Park City, UT Ski Home, a 7-bedroom, 9.5-bath home which sits at the end of a cul-de-sac on nearly 11 acres. The 9,514-square-foot home sold in 2009 for a little under the $5.25 million asking price. Apparently, Park City real estate really doesn’t come cheap.
After losing two straight presidential races, Mitt Romney and his family now call Utah home.