David Rubenstein, co-founder of the Carlyle Group, on Thursday pledged to compensate investors hit by the collapse of a $22bn MBS fund that the buy-out group floated seven months ago. After futile talks with banks to rescue Carlyle Capital Corp, Rubenstein told the FT that Carlyle was examining legal issues about compensating shareholders in CCC, a separate legal entity. CCC, 15% owned by Carlyle Group employees, said its banks were likely to take possession of remaining assets and liquidate them after it failed to meet margin calls that exceeded $400m. Shares in CCC, which listed in Amsterdam at $19 last July, plunged 87.5% to $0.35 on Thursday.

This entry was posted by Gwen Robinson on Friday, March 14th, 2008 at 5:44 and is filed under Capital markets, Hedge funds, People, Private equity. Tagged with carlyle, ccc, david rubenstein. Edit this entry.