Thursday, October 4, 2018

Middle East Forgives Rubenstein for Carlyle Capital Corporation

PRNewswire ran a piece on Carlyle Co-founder David Rubenstein:

ABANA, the preeminent US organization for finance professionals and institutions with interest in the Middle East and North Africa, honored David M. Rubenstein, Co-Founder and Co-Executive Chairman of The Carlyle Group,

Khaldoon Khalifa Al Mubarak, Group Chief Executive Officer and Managing Director of Abu Dhabi's Mubadala Investment Company, said: "It was my pleasure to introduce David Rubenstein as he received the 2018 ABANA Achievement Award. David's work, spanning several decades, has helped develop the investment and asset management industry across the MENA region, with Carlyle as one of the most established investment partners for many regional institutions."
Mubadala purchased a $1.35 billion chunk of Carlyle in 2007 adding another $500 million in 2010.   Past winners of the award included Kuwait's Bader al Sa'ad and Saudi Prince Alaweed bin Talal. 

FT reported in November 2009 of Kuwait investor anger over the collapse of Carlyle Capital Corporation.

A prominent Kuwaiti conglomerate is suing the Carlyle Group in a local court, alleging that the US private equity firm misrepresented the safety of its affiliate, Carlyle Capital Corp, a public debt fund that collapsed in March 2008.

CCC became one of the first casualties of the financial crisis, because of its high leverage, which made it highly sensitive to small moves in prices. Its investors lost all their money.  

The implosion of CCC has damaged Carlyle’s reputation in the Middle East, where the affiliate raised most of its funding, according to people familiar with the matter. It is a personal setback for Carlyle’s co-founder and chief fundraiser, David Rubenstein, a frequent visitor to the Gulf. “Arab money made Carlyle what it is,” said the head of the investment bank of one major financial institution in Dubai. 

All is forgiven.  David Rubenstein is once again legend in the Middle East.  His silence over the detention of Saudi Prince Alaweed bin Talal likely helped.   Truly inspiring.

Update 10-9-21:   Rubenstein moderated a panel at the "Davos in the Desert" in January 2021.  The Khashoggi murder is such old news that the man behind the execution is being promoted for his public service by Crown Prince bin Salman.  Further evidence that Khashoggi's brutal killing is in the rear view mirror came from bin Salman led Saudi Public Investment Fund's purchase of Newcastle United.