Quadrangle Group, the New York-based private equity firm tainted by the alleged actions of former partner Steven Rattner, today informed investors of several upcoming management changes. This includes firm co-president Josh Steiner transitioning into a senior advisor role, with fellow co-president Michael Huber and Peter Ezersky taking over the reigns.
There had been speculation that Quadrangle also would announce a new name or minority owner, but neither is included in today’s investor letter. The firm did acknowledge its attempts to secure a strategic investor — in a process managed by Evercore Partners — but said that it has not yet borne fruit:
A source close to the firm says that the Evercore process is now over, although some sort of secondary market transaction (to provide LP liquidity) is possible at a future date. The source adds that LPs have not yet requested such a sale, and that Quadrangle is cutting around 18% of the remaining $366 million in capital commitments owed by investors.
Limited partners in Quadrangle’s second fund include CalPERS, CalSTRS, Pennsylvania Public School Employees’ Retirement System, BlackRock, New York State Common Retirement Fund and the New Jersey State Investment Committee.
According to the letter, other Quadrangle management changes include:
- Principals Andrew Frey and Ed Sippel leaving Quadrangle. Sippel will remain on the board of Tower Vision.
- Also leaving are investor relations chief L.J. McKay and COO/CFO Steve Davidson. Some of the back office responsibilities will be transitioned to remaining Quadrangle staffers, while accounting will be outsourced to J.P. Morgan.
- Steven Felsher, former chairman and CFO of Grey Global Worldwide Group, will join as a senior advisor.
- Thomas Kohut, former senior director with The Siegfried Group, will join as a principal.
Finally, the firm said that senior management will reallocate some of their anticipated carried interest to more junior firm members. You can read a full copy of the letter below: