Current news for this fund:
Carlyle Capital Corporation - Bonds, including CDOs
Count of distinct funds: 1
FT has an article confirming the last formalities with winding up Carlyle and selling of its assets have been completed:
This was all of course no thanks to the Fed, which probably hastened the seizure and selloff of Carlyle assets by creating its TSLF facility last week, allowing banks greater ability to monetize dodgy collateral. Incidentally, this portends ill for other hedge funds that might have been hanging by a thread.
Gary North has a good essay with some Carlyle post-mortem comments here. The list of Carlyle counter-parties is a whos-who of the big banks, who were effectively rescued by the Fed's TSLF.
Stick a fork in CCC: Carlyle fails to save $22bn CCC fund.
Bloomberg is all but calling it over:
Carlyle itself admits that the fund ill-advisedly used 32-times leverage. Other interesting diagnostic comments include:
Timesonline UK has the update on Carlyle's now-well-underway liquidation:
At this point it looks like a foregone conclusion that this Carlyle fund is not coming back.
Original Ailing Writeup, 2007-08-28:
Private equity group Carlyle is working to save its Dutch publicly-listed subsidiary Carlyle Capital Corporation, an investment fund described in this EuroNext press release as a "hedge fund" which invests in various sorts of bonds.
According to the TimesOnline article above, Carlyle has extended about $200 million of credit to the fund in just a week. $30-40 million was lost on a sale of about $900 million in bonds, and Carlyle is apparently hoping to "plug the dike" (the fund is based in Amsterdam).
Around $600 million was raised privately and $300 publicly just a few months ago to start the fund. It is estimated that the fund has around $20 billion in positions, representing a gearing somewhat over 10x.
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Important: This fund is on our list of hedge funds that have "imploded" (see also ailing lenders). However, please note that "imploded" is a somewhat subjective. The "imploded" list contains hedge funds (or other unregulated and autonomous speculative investment funds) which have gone through some sort of permanent adverse change. This is a somewhat subjective call, and does not necessarily mean total shutdown or bankruptcy. It can also mean steep and rapid mark-downs in net asset value; or abnormal "bail-out" by corporate parents or peers in order to avoid write-downs and provide liquidity. The funds are of any type and sector.