Friday, August 1, 2008

Carlyle Group Blue Over Latest Failure

Hedging contributed to Carlyle's biggest failures. The latest casualty was Blue Wave Partners Management, swamped by the debt crisis which took down Carlyle Capital Corporation earlier this year.

Making bad bets sent another affiliate, SemGroup into Chapter 11 bankruptcy. Reuters reported the company "suffered $3.2 billion in losses on energy futures and derivatives trades that SemGroup says were designed to protect its physical oil trading business."

Carlyle is now liquidating its $600 million Blue Wave Partners Management while keeping its good name. They can drown their sorrows with $2.54 billion worth of Booz.