A Kuwaiti conglomerate LP suing private equity firm Carlyle Group

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)