Saturday, March 22, 2014

Carlyle Group Goes for Gold reported:

Vermillion, the commodity arm of the formidable US private equity group Carlyle Group, started trading a new gold and base metals fund this month as it seeks to rebuild market presence after losing more than half of its capital, Reuters reported this week. It's not a big fund, with capital of just $122.5m from 23 investors, but it looks interesting. 

Despite Vermillion's ups and downs in commodities, the fund has "won a liking for its physical premium play in metals, combined with options trading", Reuters reported.
Reuters reported:

Vermillion lost more than a $1 billion in assets under management last year.
Vermillion's assets fell from above $2 billion in March 2013 to around $900 million by December.
How might formidable Carlyle (and its long term money) recover their investment in Vermillion?