Monday, 20 October 2014
Last updated 2 days ago
Mar 17 2008 | 9:53am ET
Troubled hedge fund Carlyle Capital is calling it quits and will begin to unwind all of its remaining assets. News of the move sent the firm’s shares tumbling more than 50% today, and it admitted that there would not be any money left for shareholders.
“As expected, the company received default notices from its remaining two lenders and it believes that its lenders have now taken possession of substantially all of its U.S. government agency AAA-rated residential mortgage-backed securities (RMBS),” said the firm. “As a result, the company believes its liabilities exceed its assets.”
Carlyle will work with a court appointed liquidator to “ensure an orderly realization of assets and their subsequent distribution.”
Earlier this month, Carlyle received margin calls in excess of $400 million and in total, through March 12, the Carlyle Group affiliate had defaulted on approximately $16.6 billion.
The hedge fund’s parent had pumped in $250 million in credit and loan facilities and was prepared to provide substantial additional capital if the fund could successfully refinance with its lenders. But negotiations deteriorated late last week when, among other things, the pricing service utilized by certain lenders reported a drop in the value of the RMBS collateral.
Carlyle Group management has a 15% stake in the hedge fund.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
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