Buyout firm Carlyle Group has won a Guernsey lawsuit that alleged it had failed to take steps to save a financial crisis era bond fund.
In 2008, the company’s mortgage bond fund, Carlyle Capital Corp, or CCC, borrowed vast sums from banks to buy $23bn in bonds, then struggled to keep financing the bond portfolio when a deteriorating US housing market spooked its lenders. Investors in the fund lost their entire $945m in capital over CCC’s brief life.
