Carlyle Group distances itself from beleaguered offshoot

The alternative assets giant has issued a statement downplaying the damage credit-focussed Carlyle Capital Corporation may cause the overall franchise.

The Carlyle Group attempted to downplay the travails of its publicly listed, credit-focussed affiliate yesterday in releasing a statement about Carlyle Capital Corporation (CCC).

Carlyle Capital, a mortgage-bond specialist publicly traded on Euronext Amsterdam, has sunk into dire financial straits recently as its lenders have made repeated margin calls and its stock price has plummeted. Hit hard by the mortgage and credit crises, CCC closed today at $2.80 (€1.80), down 89 percent from its fifty-two week high.

“The Carlyle Group and CCC are separate legal and business entities and under a contractual arrangement,” the $75 billion private equity heavyweight said in a statement. “We believe that the challenges facing CCC will have no measurable impact on any other fund sponsored by The Carlyle Group or any of our portfolio companies.”  

The Carlyle Group general partnership has extended $150 million in emergency credit to CCC, according to the press release.