This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Why Wall Street Loves Mitt Romney: Q&A With THL Partners' Scott Sperling

Stocks in this article: DNKN

TheStreet: You are a numbers guy, how you reconcile Romney's budget?

Sperling: I think there are certain assumptions candidate Romney makes about the ability of his actions to stimulate economic growth and that is one of the key assumptions he utilizes in order for him to get to the numbers that he is projecting. If you look at what Ronald Reagan did in the 1980s, he inherited a worse economic situation where the misery index was higher than it was even in 2009. The actions Mitt is talking about are the same ones that led to 8% GDP growth under Reagan .

With Bill Clinton, the growth came when he cut capital gains taxes, when he started to reach across the aisle on things like 'Welfare to Work,' and when he and his cabinet worked on various deregulations that actually allowed companies to have lower costs and achieve higher rates of growth. That prescription led to the growth rates, in fact higher growth rates than are assumed in Mitt's budget.

If all we look at are tax cuts and the fact that Mitt has promised not to increase taxes on the middle class, the assumption that some skeptics are making is that I'm going to have to increase taxes by $2,000, which Mitt is just not going to do. Then they say, 'well if you don't do that then how do you achieve the budget deficit objectives you say you are going to achieve?' The way you get there is through economic growth. But that's easy to pick on.

TheStreet: How does Mitt Romney's experience running Bain Capital support his economic agenda?

Sperling: The thing that Mitt has done well is really identify ways to drive growth and work in highly complicated, often troubled situations and really turn these companies around, instead of being stuck in a problem. The result is you end up being in a higher growth situation. In the case of private equity, it meant very strong rates of return for Bain and its investors. He took that same skill set and applied it to the Salt Lake City Olympics and turned it into a great success.

TheStreet: Mitt Romney's recently been plagued by public relations 'gaffes,' what's your take?

Sperling:The fact is that Mitt is not a lifetime politician, which means he is not going to be glib in the way that the press might like a politician's glib. So what the press thinks of as a gaffe is not so much a gaffe as it is Mitt Romney stating the truth. Look, Mitt did not articulate the hard truths probably as well as he would like, as he said... the fact is he was really talking about why you have so many people dependent on the government and we just can't have that because those people don't want to be dependent on the government. It's not the way Americans want their lives to go and we have to return to a set of policies that will allow for the kind of growth that will put people back to work.

For on private equity investments, see Scott Sperling speak about how THL Partners, Bain Capital and The Carlyle Group helped to drive a top and bottom line earnings recovery at Dunkin' Brands (DNKN - Get Report), the parent of Dunkin' Donuts.

For more on private equity, see why Goldman Sachs is cutting its private equity future by half. Also see why a dividend is key to Carlyle Group's stock strength.

-- Written by Antoine Gara in New York

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs