Steve Rattner's Old Fund Quadrangle Is On Its Deathbed

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 theĀ NYPost, aren’t remotely interested.

Changes include:

  • 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.

For more details go theĀ  New York Post >

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