Quadrangle Group operating principal Daniel Rosensweig, who helped the media and communications buyout firm establish its Silicon Valley office in 2007, is leaving to join Activision Publishing’s RedOctane unit as president and chief executive officer.
Rosensweig’s move is the second recent high-profile departure for Quadrangle, with founder Steve Rattner joining the Obama administration in February as an advisor to the Treasury Department on the auto industry. His move triggered a “key-man” clause under which limited partners in the firm’s $1.8 billion second fund can terminate its commitment period, which has less than two years left.
At RedOctane, Rosensweig will oversee global operations including development, manufacturing and marketing for the company’s Guitar Hero video game, which in January surpassed $1 billion in North American retail sales. He was previously chief operating officer for Yahoo! from 2002 to 2006, and has recently been in the running for positions including Yahoo!’s new CEO and head of advertising for Microsoft, according to the Washington Post.
Rosensweig’s jump to the thriving video game industry comes amid the tougher market for investing in online and start-up companies in the high-tech sector. Quadrangle brought Rosensweig on in August 2007 as part of an ambitious attempt to expand its investments in the online search sector through a new Silicon Valley office.
One of the first transactions his team was involved in was the attempted $426 million takeover of Connecticut-based Greenfield Online, a provider of internet survey services as well as the owner of European price comparison website ciao.com. However, the firm eventually walked away from the deal following a higher winning bid by Microsoft in September 2008, pocketing a $5 million transaction fee in the process.
Quadrangle could not be reached for comment.