Carlyle's Claren Road Suffers Almost $1 Billion in Redemptions
- Clients asked to withdraw about $3 billion since June
- Hedge fund firm to start 2016 with $1.25 billion in assets
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Claren Road Asset Management, the hedge fund manager majority owned by Carlyle Group LP, suffered $950 million in withdrawal requests in the fourth quarter, according to a person familiar with the matter, leaving assets 85 percent below their peak last year.
Claren Road will start January with $1.25 billion in assets, down from a high of $8.5 billion in September 2014, said the person, asking not to be identified because the information is private. The firm let clients wait until last week to put in their withdrawal notice in the hopes that fewer investors would decide to exit. The notice period is normally 45 days before the end of the quarter.