Carlyle bails out its $20bn Dutch fund

"Carlyle Capital, floated in Amsterdam less than two months ago, said it had sold assets worth about $900 million, including four sets of structured credit products known as collateralised loan obligations. ... It said losses on the sales will be $30 million to $40 million, roughly equivalent to its post-tax profits over the past six months of $33.4 million. Carlyle Capital said it was 'unlikely' to pay a dividend for the third quarter. ... Carlyle only invests in AAA-rated mortgage securities and has now exposure to lower-rated, sub-prime markets. However, its exposure is exacerbated by leverage. The fund raised $600 million from a private placement before raising a further $300 million from the listing in July. Gearing its borrowing level helped increase assets to about $20 billion."