Chris Ullman News
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Carlyle Group LP, the world’s second-largest private-equity firm by assets, filed to register almost 264 million common units that could be issued to company executives in the future, according to a regulatory filing.
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Carlyle Group LP’s three founders received at least $135 million each in 2012, almost all from dividends on their ownership stakes and distributions on personal investments made in Carlyle funds before the private- equity firm went public in May.
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Private equity, an investing trade plied by 4,500 firms with $3 trillion in assets, is bracing for a shakeout that’s been brewing since the collapse of credit markets choked off a record leveraged-buyout binge.
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Carlyle Group, the world’s second- largest private-equity firm, was sued by liquidators of the buyout company’s defunct mortgage bond fund, saying executives lost $945 million in overly risky investments.
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Carlyle Group LP is putting midtown Manhattan’s 650 Madison Ave. on the market, with a sale expected to fetch more than $1.3 billion and possibly lead to a redevelopment of the office tower into residences, two people with knowledge of the situation said.
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Seven people were charged in Manhattan federal court with securities fraud and conspiracy as part of a five-year investigation of insider trading at hedge funds by the FBI and the Justice Department.
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Galleon Group LLC co-founder Raj Rajaratnam said the punishment sought by the government for his insider-trading convictions is “grotesquely severe” and should be rejected by the court. The U.S. said a long prison sentence is warranted.
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Carlyle Group LP, in a transaction nine months before it filed to go public, saddled itself with debt to pay owners including William Conway, Daniel D’Aniello and David Rubenstein a $398.5 million tax-deferred dividend.
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Carlyle Group, pressing ahead with plans for an initial public offering, is meeting privately with analysts to convince them the buyout firm is worth at least as much as its most richly valued competitor, Blackstone Group LP.
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Seven men, including fund managers and analysts, were charged by the U.S. with forming a “criminal club” of friends and co-workers who reaped almost $62 million from insider trading in Dell Inc. shares.
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