The New York Times attacked Mitt Romney’s investments by highlighting an offshore fund, Sankaty Credit Opportunities Investors (Offshore) IV.
The 2011 tax return for the blind trust belonging to Mr. Romney’s wife, Ann, released last month, showed holdings, for example, in investment vehicles that control two related funds — Sankaty Credit Opportunities IV, L.P., organized in Delaware, and Sankaty Credit Opportunities (Offshore) IV, L.P., set up in the Caymans.
The confidential offering memorandum for Sankaty Credit Opportunities IV, part of a trove of documents dating to 2004 obtained by The New York Times, is explicit in the purpose of its Caymans counterpart. It states that it is designed to “accommodate qualified non-U.S. investors and U.S. tax-exempt investors,” and explains that the Delaware fund is “expected to incur income that is considered ‘unrelated business taxable income.’ ”
Jonathan Lavine founded Sankaty Advisors, Bain Capital’s fixed income and credit affiliate, in 1997. Lavine serves as managing partner and chief investment officer for Sankaty Advisors. Sankaty Credit Opportunities Investors (Offshore) IV is also managed by Lavine, as indicated by its most recent 13F filing with the SEC dated June 30.
When he is not managing accounts in the Cayman Islands, Lavine bundles for President Barack Obama’s campaign. On September 13, the New York Times reported that Lavine has raised at least $144,000 for Obama since 2007. During the last three election cycles, Lavine has contributed at least $315,800 to Democratic candidates or committees. Since the New York Times was aware that Lavine is an Obama bundler, it is unclear why it failed to mention Lavine in its attack piece on Romney.
Lavine is also a member of the Boston Celtics ownership group.