Another Carlyle Group fund has run aground and is liquidating. It’s multi-strategy Blue Wave fund, which has seen assets drop from $900 million when the fund opened its doors in 1997 to around $600 is going the orderly liquidation route:
Blue Wave, a joint venture started
last year with former Deutsche Bank AG executives Rick Goldsmith and Ralph
Reynolds, is the second Carlyle-affiliated fund to close this year. Carlyle
Capital Corp., an Amsterdam-listed fund, collapsed in March after defaulting on
$16.6 billion of debt.Blue Wave, whose assets dropped to
about $600 million from $900 million when it opened in March 2007, was hurt by
investments in debt and residential mortgage-backed securities shortly before
record U.S. subprime-mortgage defaults sparked a global credit crisis. The fund
returned 2 percent this year after falling 10 percent in 2007.The fund failed to gain “the
critical mass of assets under management necessary to support a multistrategy
fund infrastructure,” the firm said today in a statement. The fund would have
had to return 9 percent before it could charge investors performance fees of as
much as 20 percent.
Carlyle to Shutter Blue Wave Hedge Fund After Losses – Bloomberg
Tags: Carlyle, Credit Crunch, Hedge funds, Liquidations / implosions
