Quadrangle Group
Encyclopedia
Quadrangle Group is a private investment firm focused on private equity
. The firm invests in middle-market companies within the media
, communications and information-based sectors.
The firm, which is based in New York City
, was founded in 2000, has raised approximately $3 billion of private equity capital since inception and employs approximately 40 investment professionals in offices in New York
and Hong Kong
.
Quadrangle's private equity business, Quadrangle Capital Partners, raised a $1.1 billion fund in 2000, followed by a $2.0 billion fund in 2005. Citing a not-further-identified "investor letter", a Feb. 2010 news report said the first fund had already returned the full amount to its investors and retained stakes in several companies, while the second fund had about $500 million left to invest and was up 19 percent in 2009. No 2008 fund was referenced in the report.
In February, 2009, Steven Rattner left Quadrangle when he was named as lead auto industry adviser to United States Treasury Department Secretary Timothy Geithner. A report at the time said that Michael Huber, who joined the firm in 2000, and Joshua L. Steiner would become co-presidents of the firm.
's extensive business interests were placed in "a sort of blind trust
" with Quadrangle because of Bloomberg's possible run for the presidency. Bloomberg was reported to be a friend of Rattner. Bloomberg would "continue to have control of and access to certain investment decisions." In February, 2009, when Rattner left, a report said Quadrangle would continue with its responsibilities for Bloomberg.
In February, 2010, Mayor Bloomberg "shift[ed] about $5 billion from Quadrangle into a new investment firm devoted solely to [Bloomberg's] interest and that of his charitable foundation [with] about a dozen employees of Quadrangle," it was reported. Moving to the new unit would be Alice Ruth, who had been recruited to Quadrangle for the Bloomberg job and "who [before that] had managed the personal fortune of Gordon Moore
, Intel’s co-founder."
and Riverstone Holdings, either paid fines or had "already agreed to pay settlements and to stop using placement agents," while Rattner and Quadrangle were "among others in talks with Mr. Cuomo
’s office." In April, 2010, the firm agreed to pay fines of $7 million to Mr. Cuomo’s office and $5 million to the S.E.C. to settle its part. Rattner was not included in the agreement. According to a report, "The allegations against Quadrangle involved a movie deal that a company owned by one of the firm’s funds agreed to distribute. That film called “Chooch” was a project involving a brother of David J. Loglisci, the chief investment officer of the state pension fund. Mr. Loglisci pleaded guilty [in March 2010] to securities fraud and admitted that he helped steer pension money to political contributors of the former state Comptroller, Alan G. Hevesi, and to companies that paid kickbacks to Mr. Hevesi’s top political consultant, Hank Morris."
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
. The firm invests in middle-market companies within the media
Mass media
Mass media refers collectively to all media technologies which are intended to reach a large audience via mass communication. Broadcast media transmit their information electronically and comprise of television, film and radio, movies, CDs, DVDs and some other gadgets like cameras or video consoles...
, communications and information-based sectors.
The firm, which is based in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, was founded in 2000, has raised approximately $3 billion of private equity capital since inception and employs approximately 40 investment professionals in offices in New York
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
and Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
.
Quadrangle's private equity business, Quadrangle Capital Partners, raised a $1.1 billion fund in 2000, followed by a $2.0 billion fund in 2005. Citing a not-further-identified "investor letter", a Feb. 2010 news report said the first fund had already returned the full amount to its investors and retained stakes in several companies, while the second fund had about $500 million left to invest and was up 19 percent in 2009. No 2008 fund was referenced in the report.
In February, 2009, Steven Rattner left Quadrangle when he was named as lead auto industry adviser to United States Treasury Department Secretary Timothy Geithner. A report at the time said that Michael Huber, who joined the firm in 2000, and Joshua L. Steiner would become co-presidents of the firm.
Bloomberg relationship
In January, 2008, it was reported that New York Mayor Michael BloombergMichael Bloomberg
Michael Rubens Bloomberg is the current Mayor of New York City. With a net worth of $19.5 billion in 2011, he is also the 12th-richest person in the United States...
's extensive business interests were placed in "a sort of blind trust
Blind trust
A blind trust is a trust in which the fiduciaries, namely the trustees or those who have been given power of attorney, have full discretion over the assets, and the trust beneficiaries have no knowledge of the holdings of the trust and no right to intervene in their handling...
" with Quadrangle because of Bloomberg's possible run for the presidency. Bloomberg was reported to be a friend of Rattner. Bloomberg would "continue to have control of and access to certain investment decisions." In February, 2009, when Rattner left, a report said Quadrangle would continue with its responsibilities for Bloomberg.
In February, 2010, Mayor Bloomberg "shift[ed] about $5 billion from Quadrangle into a new investment firm devoted solely to [Bloomberg's] interest and that of his charitable foundation [with] about a dozen employees of Quadrangle," it was reported. Moving to the new unit would be Alice Ruth, who had been recruited to Quadrangle for the Bloomberg job and "who [before that] had managed the personal fortune of Gordon Moore
Gordon Moore
Gordon Earle Moore is the co-founder and Chairman Emeritus of Intel Corporation and the author of Moore's Law .-Life and career:...
, Intel’s co-founder."
NY State pension fund investigation
Mr. Rattner and Quadrangle were linked to a New York pension fund investigation "within months of his [Feb. '09] departure from Quadrangle, and [Rattner then] stepped down from his government role" summer 2009. In September, 2009, a number of other firms involved in the pension fund investigation, including Carlyle GroupCarlyle Group
The Carlyle Group is an American-based global asset management firm, specializing in private equity, based in Washington, D.C. The Carlyle Group operates in four business areas: corporate private equity, real assets, market strategies and fund-of-funds, through its AlpInvest subsidiary...
and Riverstone Holdings, either paid fines or had "already agreed to pay settlements and to stop using placement agents," while Rattner and Quadrangle were "among others in talks with Mr. Cuomo
Andrew Cuomo
Andrew Mark Cuomo is the 56th and current Governor of New York, having assumed office on January 1, 2011. A member of the Democratic Party, he was the 64th New York State Attorney General, and was the 11th United States Secretary of Housing and Urban Development...
’s office." In April, 2010, the firm agreed to pay fines of $7 million to Mr. Cuomo’s office and $5 million to the S.E.C. to settle its part. Rattner was not included in the agreement. According to a report, "The allegations against Quadrangle involved a movie deal that a company owned by one of the firm’s funds agreed to distribute. That film called “Chooch” was a project involving a brother of David J. Loglisci, the chief investment officer of the state pension fund. Mr. Loglisci pleaded guilty [in March 2010] to securities fraud and admitted that he helped steer pension money to political contributors of the former state Comptroller, Alan G. Hevesi, and to companies that paid kickbacks to Mr. Hevesi’s top political consultant, Hank Morris."
Other references
- 4 Top Lazard Freres Bankers Are Quitting to Open Firm. New York Times, March 1, 2000
- YankeeNets Network Attracts Investors . New York Times, July 20, 2001
- PLUS: TV SPORTS; Partner Pulls Out Of Yankee Cable Deal. New York Times, September 18, 2001
- On Wall St., Reputation Is Fragile. New York Times, August 5, 2008
- The Dress Code Is Relaxed, but the Courting Is Intense. New York Times, November 10, 2006
- Eyeing More Turf. New York Times, February 17, 2006
External links
- Quadrangle Group (company website)
- Quadrangle Group LLC at The New York TimesThe New York TimesThe New York Times is an American daily newspaper founded and continuously published in New York City since 1851. The New York Times has won 106 Pulitzer Prizes, the most of any news organization...
- New York Pension Inquiry at The New York TimesThe New York TimesThe New York Times is an American daily newspaper founded and continuously published in New York City since 1851. The New York Times has won 106 Pulitzer Prizes, the most of any news organization...