(6.März) Lured by the promise of a fresh pool of capital from the Middle East and encouraged by the US government, bankers and fund managers zeroed in on Seif and his friends as the key to the LIA’s billions.

Blackstone’s Stephen Schwarzman hosted a lunch for Seif and retired Carlyle chairman Frank Carlucci offered a Washington dinner. Nat Rothschild, the financier, invited Seif to a New York party, and attended a birthday bash for him in Montenegro.

Lacking experience, the LIA at first gave 20 to 30 banks around the world funds to manage, according to a person familiar with its operations.