Bailey McCann, Opalesque New York: The Carlyle Group's on again, off again relationship with retail investors has seen another breakup. The investment firm announced over the weekend that it will be closing two liquid alternative mutual funds it launched last year.
According to regulatory filings, the firm is liquidating the Carlyle Core Allocation Fund which had approximately $53 million in assets under management. The fund will close at the end of November, as will the Carlyle Enhanced Commodity Real Return Fund, which had not yet taken any money.
Diversified Global Asset Management Corp (DGAM), a hedge fund shop the firm acquired in 2014 will remain and will be the core launchpad for any future liquid alternative strategies. The Core Allocation Fund strategy had a broad mandate in terms of investible opportunities, but as a Reuters report notes, proved to be challenging for the retail space given that the average buyout fund is made up of illiquid investments that hold for 10 years or more.
Carlyle has made several efforts in the past to reach out to the retail investor, but with mixed success. The bulk of DGAM's more liquid vehicles are still aimed at the institutional investor over individuals or even RIAs.
Carlyle declined to comment on the matter.
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