Editing The Carlyle Group (section)

==Subsidiaries and joint-ventures==
Carlyle has been actively expanding its investment activities and assets under management through a series of acquisitions and joint-ventures.<ref>{{Cite news |url=https://www.reuters.com/article/us-cepsa-m-a-carlyle-group-idUSKCN1RK0CH |title=Carlyle to buy up to $4.8 billion stake in Cepsa from Abu Dhabi's Mubadala |first=Stanley |last=Carvalho |date=April 8, 2019 |work=Reuters |access-date=April 8, 2019 |language=en}}</ref>

===Carlyle Capital Corporation===
In March 2008, Carlyle Capital Corporation – established in August 2006<ref>{{cite web |url=http://www.tradingmarkets.com/.site/news/Stock%20News/1206673/ |title=Carlyle Capital Corporation Intends to File for Compulsory Winding up in Guernsey |date=March 16, 2008 |website=TradingMarkets.com |archive-url=https://web.archive.org/web/20080328041945/http://www.tradingmarkets.com/.site/news/Stock%20News/1206673/ |archive-date=March 28, 2008}}</ref> for the purpose of making investments in U.S. [[Mortgage-backed security|mortgage-backed securities]] – defaulted on about $16.6&nbsp;billion of debt as the global credit crunch brought about by the [[subprime mortgage crisis]] worsened for leveraged investors. The [[Guernsey]]-based affiliate of Carlyle was very heavily leveraged, up to 32 times by some accounts, and it expected its creditors to seize its remaining assets.<ref>{{cite web |url=https://www.reuters.com/article/bankingFinancial/idUSL1350338420080313 |title=Carlyle Capital in default, on brink of collapse |first=Reed |last=Stevenson |date=March 13, 2008 |work=Reuters}}</ref> Tremors in the mortgage markets induced several of Carlyle's 13 lenders to make [[Margin calls|margin call]]s or to declare Carlyle in default on its loans.<ref>{{cite news |url=https://www.washingtonpost.com/wp-dyn/content/article/2008/03/10/AR2008031001016.html |title=Carlyle Founders Consider Cash Infusion |first=Thomas |last=Heath |date=March 11, 2008 |newspaper=The Washington Post}}</ref> In response to the forced liquidation of mortgage-backed assets caused by the Carlyle margin calls and other similar developments in credit markets, on March 11, 2008, the [[Federal Reserve]] gave Wall Street's [[primary dealer]]s the right to post mortgaged-back securities as collateral for loans of up to $200&nbsp;billion in higher-grade, U.S. government-backed securities.<ref>{{Cite news |url=https://www.nytimes.com/2008/03/12/business/12fed.html |title=Fed Hopes to Ease Strain on Economic Activity |first=Edmund L. |last=Andrews |date=March 12, 2008 |newspaper=The New York Times |url-status=live |archive-url=https://web.archive.org/web/20131220165119/http://www.nytimes.com/2008/03/12/business/12fed.html  |archive-date=December 20, 2013}}</ref>

On March 12, 2008, [[BBC News Online]] reported that "instead of underpinning the mortgage-backed securities market, it seems to have had the opposite effect, giving lenders an opportunity to dump the risky asset" and that Carlyle Capital Corp. "will collapse if, as expected, its lenders seize its remaining assets."<ref>{{cite web |url=http://news.bbc.co.uk/2/hi/business/7293663.stm |title=Hedge fund on verge of collapse |date=March 13, 2008 |website=[[BBC News Online]]}}</ref> On March 16, 2008, Carlyle Capital announced that its Class A Shareholders had voted unanimously in favor of the Corporation filing a petition  under Part XVI, Sec. 96, of the Companies Law (1994) of Guernsey<ref>{{cite web |url=http://www.tridenttrust.com/PDFs/company.pdf |title=The Companies (Guernsey) Laws, 1994 To 1996, As Amended |website=TridentTrust |archive-url=https://web.archive.org/web/20080910093351/http://www.tridenttrust.com/PDFs/company.pdf |archive-date=September 10, 2008}}</ref> for a "compulsory winding up proceeding" to permit all its remaining assets to be liquidated by a court-appointed liquidator.<ref>{{cite web |url=http://www.carlylecapitalcorp.com/News/Press%20Releases/2007/item10306.html |title=Carlyle Capital Corporation Intends To File For Compulsory Winding Up In Guernsey |date=March 16, 2008 |website=Carlyle Capital Corporation Limited |archive-url=https://web.archive.org/web/20081225092641/http://www.carlylecapitalcorp.com/News/Press%20Releases/2007/item10306.html |archive-date=December 25, 2008}}</ref>

The losses to the Carlyle Group due to the collapse of Carlyle Capital are reported to be "minimal from a financial standpoint".<ref>{{cite news | url=https://www.reuters.com/article/bankingFinancial/idUSN1361636620080314 |title=CCC's Woes Seen as Small Blemish for Carlyle Group  |first=Jessica |last=Hall |date=March 14, 2008 |work=Reuters}}</ref>

In September 2017, the court ruled that Carlyle had no liability in the lawsuit.<ref>{{cite news |url=https://www.ft.com/content/86b58820-9173-11e7-bdfa-eda243196c2c |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/86b58820-9173-11e7-bdfa-eda243196c2c |archive-date=December 10, 2022 |url-access=subscription |url-status=live |title=Carlyle executives exonerated over collapsed bond fund |last1=DeJarnette |first1=Jordan |newspaper=[[Financial Times]]}}</ref>