The Carlyle Group announced it plans to cash in on CoreSite Realty and Al-Nabil Food Industries. The CoreSite stock sale should garner over $200 million.
Carlyle did not attend the closing of American Express Global Business Travel and was sued for failing to execute the deal.
Qatar's sovereign wealth fund (SWF) is suing Carlyle for failure to close the AmEx travel deal. Carlyle counter-sued, saying owners violated several terms of the purchase agreement.
In March 2008 Carlyle Capital Corporation (CCC) declared bankruptcy. Carlyle sold CCC as a safe investment to a Kuwaiti SWF. Mad Middle Eastern money sued Carlyle in the same Delaware court. Carlyle won.
Carlyle Capital failed six months prior to the Fall 2008 financial crisis. The AmEx Travel deal failed two months after the U.S. awakened to a global pandemic.
Upddate 5-12-20: Bloomberg did a story on the Qatar SWF lawsuit over Carlyle's no show at closing.
Update 5-13-20: Carlyle wanted their share of a $484m shareholder dividend that fell to $55 million as funds were repurposed to operations due to the coronavirus.
Update 5-28-20: FT wrote about Carlyle's reneging on AmEx travel deal.
It said, "The acrimonious ending to the partnership also complicates Carlyle’s plans to show that private equity firms — having attained fame as corporate raiders — can be a force for stability." Carlyle's attorney on the case spoke with Law.com.
Update 2-10-21: Carlyle and the Qatari SWF settled their lawsuit in a confidential settlement agreement.
