Bain Funneled Profits Through Tax Haven Luxembourg

Bloomberg has a report out on a Bain Capital investment in Italy that netted the company $1 billion in profit 12 years ago before flaming out spectacularly after they sold it. According to the report, Bain’s sold an Italian phone directory company at the peak of the tech bubble, funneling the profits from the investment through subsidiaries Luxembourg, a common practice in Europe designed at avoiding countries’ income taxes. After the sale, the company plummeted in value and still has not recovered its original worth, sparking a national scandal in Italy.