Netherlands: Carlyle fund fails

Mortgage-backed securities fund Carlyle Capital is to be liquidated less than a year after making its Euronext Amsterdam debut. The fund seemed to struggle from the start by raising just US$300m last July from US$400m target proceeds, having been forced to delay the listing for a couple of weeks as credit market volatility took hold.

The stock was down more than 50% on Monday following the meeting of Class A shareholders, who voted to wind up the fund. Although it appears likely that shareholders will receive nothing from the liquidation, the company is investigating whether shareholders can be compensated by the Carlyle Group, the fund’s ultimate parent.

By the end of last week, the shares had shed most of their value, quoted at €0.25, from an initial IPO offer price of €10 each.