In August 2006, The Carlyle Group created a new fund, Carlyle Capital Corporation Limited. Carlyle Capital focuses on fixed-income assets, including mortgages and other credit products. In July of 2007, Carlyle Capital raised $300 million in an IPO on the Amsterdam market, trading as CCC.
According to a piece today on Bloomberg, Carlyle Capital Corporation's net assets fell by 24% in August. At the end of July, Carlyle Capital reported $843.5 million in assets. At the end of August, it had $642.1 million. This loss of $192 million means that more than 60% of the funds raised in the July IPO have been wiped out.
The Carlyle Group has stepped in to support the sagging fund. It has lent it $200 million and purchased $900 million in assets. But you have to wonder how much Carlyle is willing to spend to keep this fund going. The credit markets are still a mess, and mortgages remain a risky and quite likely declining investment. Not surprisingly, shares in Carlyle Capital, at $14, are down 26% from the IPO price of $19.
According to a piece today on Bloomberg, Carlyle Capital Corporation's net assets fell by 24% in August. At the end of July, Carlyle Capital reported $843.5 million in assets. At the end of August, it had $642.1 million. This loss of $192 million means that more than 60% of the funds raised in the July IPO have been wiped out.
The Carlyle Group has stepped in to support the sagging fund. It has lent it $200 million and purchased $900 million in assets. But you have to wonder how much Carlyle is willing to spend to keep this fund going. The credit markets are still a mess, and mortgages remain a risky and quite likely declining investment. Not surprisingly, shares in Carlyle Capital, at $14, are down 26% from the IPO price of $19.
