Private equity mogul to cut media hedge fund
Private equity kingpin Steven Rattner is winding down the media-centric hedge fund portion of his Quadrangle Group.
Rattner is a onetime New York Times reporter who jumped into the financial world as a media investor with Lazard Freres and remains a fixture on Gotham’s media and finance scene.
Quadrangle, founded in 2000, manages about $3 billion and has coin in MGM and several publishing and Web ventures. Subsid Quadrangle Equity Investors, launched in 2006 as a specific vehicle for investment in media and entertainment stocks, has seen its returns fall dramatically in recent months. At its peak, it managed about $500 million.
Rattner recently hosted the latest edition of his FourSquare investment confab in Midtown. And the mother ship is holding steady — Mayor Michael Bloomberg recently entrusted Quadrangle with managing his multibillion-dollar fortune.
In mid-September, Rattner appeared alongside Sirius XM Satellite Radio chief Mel Karmazin and NBC Universal prexy Jeff Zucker at a panel discussion assessing the decimated mergers-and-acquisitions biz. The outcome at Quadrangle’s media fund is no surprise given Rattner’s comments that day.
“It’s been an incredibly slow year for the media M&A landscape,” he said at the event, held at the Four Seasons. “What’s happened in the last few days is simply going to exacerbate that.”