A Kuwaiti conglomerate is suing private equity firm Carlyle Group in a local court, alleging that it misrepresented the safety of affiliate Carlyle Capital Corp (CCC), a public debt fund that collapsed in 2008, the Financial Times reports.
The conglomerate, National Industries Group, invested $50 million in the fund, which was marketed to investors in other Carlyle funds as a safe fund that would invest largely in triple A mortgage-backed securities, the newspaper reported.
"Arab money made Carlyle what it is," said the head of the investment bank of one major financial institution in Dubai - according to FT.
(The National Industries Group is listed in our Middle East Investors Directory with the code EM15)
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