The fate of Steve Rattner’s Quadrangle may be decided today when its investors vote on whether to invoke a clause that would get them out of their future commitments to the private-equity firm’s buyout fund.
Investors are deciding whether to stick with Quadrangle or to exercise a clause that allows investors to cancel future commitments if the key person running the fund — in this case, Rattner — leaves. Rattner left the firm earlier this year to join the White House’s auto task force.
It looks as though it will be a close vote, said a person with direct knowledge of the process, who added that some investors have still not made up their minds.
Spokesmen for the city’s and the state’s pension funds — both Quadrangle investors — said neither had yet decided their vote.
If investors representing a majority of the money committed to the fund elect to cancel their future commitments then the fund could no longer make investments.