More Details On Quadrangle’s Key Man Terms – But After Monday, Does It Matter?
Writing for Fortune magazine, author William D. Cohan today painted a bleak picture of former Quadrangle head Steve Rattner’s current situation. According to the story, Rattner has potential conflicts as Obama’s “car czar,” and he left Quadrangle “in a pickle.” The story lays out specifically which concessions the firm is making for its key man vote. Remember, as recently as Monday, we were hearing LPs would let the Friday deadline pass. Meaning, investors had until this Friday (tomorrow) to vote to kill the fund, and they’d likely take concessions on things like fees and carried interest in exchange for not voting. But that was before the State of New York launched its investigation as to whether Quadrangle “intentionally misled” the firm regarding its use of multiple placement agents. With $125 million sunk into the fund, New York is one of Quadrangle’s largest LPs, and knowing that New York is unhappy could change things for the other LPs. Who’s to say they weren’t misled also? It’s clearly a situation in flux, and one we’re anxious to learn more on. For now, we’ll have to get by on the details revealed in Cohan’s story, which show just how much Quadrangle had to sweeten the deal to keep investors from killing the fund.
