Bloomberg Pulls Money From Quadrangle

Feb 23 2010 | 8:04am ET

New York City Mayor Michael Bloomberg is yanking $5 billion from Quadrangle Group, the private equity firm caught up in the pay-to-play scandal at a New York State public pension fund.

The New York-based firm, founded by longtime Bloomberg friend and former Obama administration auto czar Steven Rattner, has managed about one-third of Bloomberg’s estimated $15 billion fortune. Since 2008, Quadrangle has managed Bloomberg’s money through a separate investment team, whose approximately dozen members will join a new investment firm that will manage only the mayor’s money and that of his charitable foundation.

“Having successfully built out the investment team and operating functions necessary to provide these services, Mayor Bloomberg believes creating this independent entity will allow his investment team to operate with the flexibility and privacy that he seeks,” Quadrangle wrote to investors. “We thank Mayor Bloomberg for his support and confidence, and we wish our colleagues well in the transition to their new home.”

Bloomberg’s decision cuts Quadrangle’s assets under management by more than half. It also leaves the firm with only its private equity business; Bloomberg was the only client of its asset management unit.

Quadrangle, which Rattner left when he joined the Treasury Dept., has not been accused of any wrongdoing in the pay-to-play scandal at the New York State Common Retirement Fund. But the Securities and Exchange Commission said the firm won a $100 million allocation from the pension after a DVD distribution company owned by Quadrangle agreed to distribute a movie produced by the brother of one of the alleged architects of the kickback scheme.


In Depth

Will Liquid Alts’ Performance Sustain Future Asset Flows?

Aug 25 2014 | 10:34am ET

Liquid alternative investment funds saw the highest percentage of capital inflows...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.