Dutch listed affiliate Carlyle may face cashflow trouble : by Alexandra Hudson
Private equity firm Carlyle Group's Dutch-listed affiliate said on Friday it may face cashflow problems after it received substantial additional margin calls and default notices. "In the past several days there has been a rapid and severe deterioration in the market for U.S. government agency AAA-rated residential mortgage-backed securities," Carlyle Capital Corporation (CCC) said. CCC had said earlier it received margin calls totaling more than $37 million on Wednesday and expected at least one more default notice. The Dutch market regulator (AFM) suspended trading in CCC after its shares closed on Thursday at $5, having lost more than half their value. Carlyle Group has a $150 million exposure to CCC through a credit facility.
Washington DC based The Carlyle Group has more than $75 billion under management and has attracted a string of high-profile advisers including President George Bush in the early 1990s and former British Prime Minister John Major. This week it said it had hired Olivier Sarkozy, half-brother of French President Nicolas Sarkozy, from investment bank UBS as it looks to "capitalize on the dislocation in the financial services sector."
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