Carlyle: Reputational risk

The Carlyle Group can’t be relishing the unflattering spotlight on its publicly-listed hedge fund Carlyle Capital Corp. The mortgage bond fund was suspended from trading in Amsterdam after creditors forced the sale of some holdings. Carlyle’s founder David Rubenstein has to decide whether to bail out the fund or risk it going belly-up, leaving shareholders who banked on Carlyle’s expertise out-of-pocket. Injecting capital might keep the fund afloat and minimise reputational damage. There’s a cha...