When you think of top private equity funds, you think of the likes of KKR, the Blackstone Group and the Carlyle Group. We tend to think of them as uber-financiers, backed up by the best and brightest culled from top investment banks. So when one of the faces defaults on a hedge fund, it really says a lot about the state of the world. I'm not saying it holds the same psychological weight as the collapse of LTCM. Still, that Carlyle could not muster any financial wizardry or back-room deal to save its credit fund is a bit surprising. The fund will die.  

For background on the fund collapse:
- here's a MarketWatch article

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