Carlyle Group on July 31 announced that the assets of its hedge fund joint venture Carlyle-Blue Wave Partners Management will be liquidated over the next few months. This is an orderly liquidation to ensure fair and equitable treatment of all investors, said Chris Ullman, a Carlyle Group spokesman.
The multistrategy hedge funds held $900 million at their peak and now manage about $600 million after being hit hard by credit-related turmoil last year, said a source with knowledge of the situation who asked for anonymity.
In a news release, Carlyle officials noted that the funds launched in a challenging market (2007) and have not been able to achieve the critical mass of assets under management necessary to support a multistrategy fund infrastructure. Investors have been informed that the funds have begun to liquidate their portfolio in an orderly manner.
The Carlyle Group is a minority partner in CBW, and Mr. Ullman stressed that the firms private equity business is unaffected by the closure of the hedge funds, noting that Carlyle has closed on 14 transactions so far this year, valued at $16.2 billion.