US-based firm Quadrangle Group is reportedly closing its London office in order to focus on Asia. According to a report carried by Reuters, the firm said in a letter to investors that it saw attractive investment opportunities in the region.
Quadrangle could not be reached for comment at press time.
The firm will also focus on realisations and exits in its current portfolio. It will invest in Europe from the US, the newswire said. The change in strategy will also see the departures of Gordon Holmes, who presently heads the London office, and Doug Kramer, the New York-based chief operating officer who joined in 2008, it noted.
Quadrangle’s Hong Kong was set up by its managing principal Edward Sippel in September 2008. As of March, office has a three-strong investment team, comprising of Sippel, Mark Brennan, who was promoted to vice president from senior associate in March, and Fang Li, an associate.
Quadrangle's decision to scale down its European operations in favour of Asia would come in marked contrast to the actions taken by a number of Western firms like Sun Capital Partners, Cerberus Capital Management and Candover. All have retreated to their home turf while pulling back their Asia operations.
This March, Candover told its Asian and Central and Eastern Europe arms to either raise their own funds or face closure. In February, Sun Capital disbanded its Tokyo office, while in the same month sources told the UK’s Financial Times that Cerberus was close to shutting down its Hong Kong office.
By the end of 2009, the number of investment professionals at Quadrangle will reportedly be down to 23 from 27. Earlier this year, co-founder Steve Rattner left the firm to join the administration of US President Barack Obama as an advisor on the auto industry.
The firm had expanded rapidly before the crisis. In 2007, it launched an asset management arm, made a number of senior hires and opened offices in London and Silicon Valley. In 2008, it made more senior level hires and opened its Hong Kong office.
Quadrangle typically invests between $100 million and $250 million in businesses in the media and communications sector globally. It has more than $6 billion in assets under management.