Steve Rattner’s old private equity firm, Quadrangle, is in the advanced stages of shuttering itself in its current form, the New York Post reports.
Insiders say that the embattled media-focused group “will cease to exist in its current form” and that plans to transform Quadrangle have been in the works since summer.
Ideally, Quadrangle wants to be purchased by a fund like Howard Marks’ Oaktree or Caryle, which according to the NYPost, aren’t remotely interested.
- Managing principal Andrew Frey will be gone by the new year
- Co-founder Joshua Steiner is scaling back his role
- Headcount is dwindling: the firm has less than 45 workers and it used to employ 90.
- AUM has taken a dive to $2.5 billion says sources (according to the firm, it still has $3 billion AUM)
- The firm’s biggest client, Mayor Bloomberg, removed his money in February – $5 billion.
- The firm’s attempts to find a buyer – Carlyle and Oaktree Capital were reportedly interested at one stage – have “stalled”
Rattner, who left Quadrangle in 2009, was also implicated in the kickback scandal that has plagued the firm since 2009. He paid $6.2 million in fines and is banned from the securities industry for two years.