Carlyle Capital Collapse
Lenders to the
Carlyle Group subsidiary,
Carlyle Capital have ceased the fund's assets. The mortgage fund's decline comes as the economy faces a shrinking home-loan environment. Specifically, the fund defaulted on $16.6 billion of debt, failed to meet $400 million on margin-calls, and fell 87% on trading in
Amsterdam. In a statement to Bloomberg radio, Arthur Levitt, a Carlyle senior adviser, stated that the decline was the result of excess leverage adding "this did not affect the overall Carlyle enterprise." The rest of the Carlyle family is not on the hook for the majority of the fund's obligation, save a $150 million revolving line of credit.
Quotes:
- Dorothy Lee, the Hong-Kong based Carlyle Spokeswomen:
"The Carlyle Group's only material financial exposure to CCC is through a $150 million unsecured subordinated revolving credit agreement with CCC"
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