Quadrangle Group, a private investment firm based in New York, has announced that it will invest $150 million (€120.5 million) to obtain a 17 percent stake in US cable company Cebridge Connections Holdings.
The acquisition will be made through the $1.8 billion Quadrangle Capital Partners II LP, a media- and communications-focused private equity fund that held its final close at the end of 2005. Quadrangle will hold two of the eleven seats on Cebridge’s board of directors.
Existing investors of the cable company include global investment bank Goldman Sachs’ private equity arm GS Capital Partners, as well as Los Angeles-based hedge fund Oaktree Capital Management.
Cebridge is currently in the midst of acquiring cable service subscribers from Cox Communications and Charter Communications, to build up a total subscriber base of around 1.4 million subscribers by the end of the third quarter of 2006. Once the subscriber acquisitions are complete, Cebridge will rank among the US’ top ten largest cable companies, with a customer base spread across 16 states in the US, primarily in Texas, West Virginia, Louisiana, Oklahoma and Arkansas. Cebridge is expected to be renamed in the near future, with the moniker “Suddenlink” a likely choice.
Quadrangle, established in 2000 and led by managing principal Steven Rattner, has recently made moves to diversify into the hedge funds business. Earlier this year, the buyout shop hired Robert Donahue, the head of media and telecom long/short manager Harpoon Equity Management, while at the same time absorbing Harpoon – which has been renamed Quadrangle Equity Investors.