Carlyle Capital Corporation, the Amsterdam-listed investment company backed by private equity firm The Carlyle Group, yesterday failed for the first time to meet the margin requirements of four counterparty banks on which it relies to finance a $21.7bn (â¬14.2bn) portfolio. It is the latest example of the precarious position of highly leveraged investors.
As of last Wednesday Carlyle Capital's portfolio was leveraged by 32 times the amount of its equity, according to the company's annual report.
