Firm Says It Can Sue Carlyle For Fraud In Kuwait

Aug 27 2012 | 1:40pm ET

A Kuwaiti firm has sued the Carlyle Group, accusing the private equity giant of selling a fund in the kingdom without a license.

National Industries Group invested $25 million in Carlyle Capital Corp. in 2006. That fixed-income vehicle collapsed during the financial crisis. NIG sued the firm in 2009 alleging that Carlyle misrepresented the fund when marketing it to the company. But Carlyle pointed to its contract with NIG, requiring disputes to be settled in Delaware.

But NIG has its own red-tape argument, alleging that the contract is void because Carlyle lacks a Kuwaiti securities license. The company has asked the U.S. court to dismiss the litigation there and allow its lawsuit in Kuwait to proceed.

"Carlyle was more than happy to conduct its sales presentations in Kuwait and close its deals in Kuwait," Ahmed Hassan, general manager of NIG, which is controlled by the powerful Kharafi family, said. "But now that the moment has come to deal with the ugly aftermath and the firm's attempts to mislead and deceive its own investors, Carlyle would prefer to try its luck in Delaware."


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note