$60 million preferred stock investment in Princeton and effectively took the company over, replacing former CEO John Katzman with Michael J. Perik, former CEO of The Learning Company (another Bain company).
Said Perik, at the time, "I am also pleased to be able to work again with Bain Capital. First
at The Learning Company, then at Houghton Mifflin, and now at The
Princeton Review, I have been impressed by the firm's ability to
identify market leaders and its skill at building lasting value for all
As an inducement to hiring Perik as CEO, the company granted him a
stock option to purchase 1.7 million shares of the company's common
stock having an exercise price of $4.69 per share. How nice for him.