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The SEC has charged private equity queen Lynn Tilton with allegedly 'hiding poor performance' in 3 of her funds
Lynn Tilton, the "diva of distressed" who runs private equity firm Patriarch Partners, has been charged with fraud by the Securities and Exchange Commission. The SEC claimed that Tilton and her firm were able to collect around $200 million in fees after allegedly hiding poor performance in three collateralized loan obligation (CLO) funds since 2003. The CLO funds, which are known as the Zohar Funds, make loans to distressed companies that become the funds' assets. Collectively, the funds manage around $2.5 billion. According to the SEC, though, many of the distressed companies in the Zohar funds have performed ... (full story)