Financial Times FT.com

Ill wind hits Carlyle healthcare deal

ByHenny Sender and Saskia Scholtes in New York

Published: October 24 2007 22:07 | Last updated: October 24 2007 22:07

Turmoil in the market for debt backed by commercial mortgages is hitting some private equity deals hard, raising financing costs and eroding the profitability of buy-outs that depend on cash flows from real estate.

Carlyle Group’s planned $6.3bn purchase of US nursing home operator Manor Care is among the deals to have been caught in a swift downdraft in the commercial mortgage-backed securities market.

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