UPDATE 1-Carlyle throws another lifeline to listed fund

(Recasts with new details)

AMSTERDAM/LONDON, Aug 28 (Reuters) - Private equity firm Carlyle Group [CYL.UL] has agreed to lend another $100 million to a leveraged fund that invests in mortgage-backed securities to help it weather the choppy markets.

Carlyle Capital Corp Ltd CCC.AS, which was listed on the Amsterdam exchange just two months ago, said on Tuesday it was also scrapping a planned dividend and selling $900 million of assets to help shore up the fund.

Carlyle Capital shares tumbled as much as 6.7 percent to $14 on Tuesday, though recovered to $14.95 by the close, down just 0.33 percent. The IPO price was $19, having been lowered from an initial range of $20 to $22.

Carlyle Capital said current conditions were worse than in 1998, when the demise of Long Term Capital Management threatened financial markets, and it also apologised for not keeping investors adequately informed about the portfolio's troubles.

"We understand these efforts have been unsatisfactory and frustrating to many of you," Chief Executive John Stomber wrote in a letter.

Carlyle Capital, which has completely drawn down a previous $100 million loan from Carlyle Group earlier in the month, sold $900 million of collateral loan obligations, mezzanine debt and other parts of its portfolio, but they amounted to less than 5 percent of total assets.

It said related losses from the sales would be between $30 million and $40 million.

The fund added that it had been freed from a commitment to fund $75 million of Carlyle Group's distressed debt funds.