The co-owner of the NBA's Boston Celtics said he learned a lot about government "from the inside" during his short bid but is happy at $70 billion Bain.
Pagliuca, however, slammed current lawmakers over their inability to set a long term fiscal plan.
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"I don't think this policy of having this cliff happen every few years or few months is a great thing for the economy," said Pagliuca. "The private equity business in general is looking for 'What's the road map? What's the game plan?'"
Pagliuca said Washington should develop a seven- to 10-year plan and stick to it.
"We just can't sustain this level of national debt," Pagluica said, echoing one of Romney's central 2012 presidential campaign themes.
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"I don't think you do it overnight, because you don't want to kill the economy, but there's got to be a long-term plan," added Pagliuca.
Despite the broader fiscal challenges, Pagliuca said the U.S. economy was "robust" and a "good market to invest in."
He said there are still "some great deals" even if GDP is likely to grow by only 2 or 3 percent.