Quadrangle’s Rattner, Margolis launch Willett Advisors

Steven Rattner has reunited with his former Quadrangle Asset Management team to launch a new firm managing the family money of New York Mayor Michael Bloomberg.

The firm – Willett Advisors – is operating from the offices of the Bloomberg Family Foundation, on East 78th Street, in Manhattan, PERE has learnt.

Joining Rattner is Howard Margolis, previously head of real assets at Quadrangle Asset Management; Tushar Shah, director of public markets at QAM; Alice Ruth, chief investment officer of QAM and Sigurd Strack, director of private equity investments. Quadrangle Asset Management was set up by the private equity firm in early 2008 to act as a dedicated investment team managing the money of Bloomberg’s family office.

Joining Rattner is Howard Margolis; Tushar Shah; Alice Ruth and Sigurd Strack.

Margolis was hired by QAM in early 2009 to build a real estate fund of funds. He joined from Black Creek Capital having previously worked at the Singapore sovereign wealth fund, GIC Real Estate.

In a recent email to family and friends announcing the launch of Willett Advisors, and seen by PERE, Rattner said the firm would “serve as advisor to and manage the assets of the Bloomberg family office, including those of the Bloomberg Family Foundation”.

At the end of February, Quadrangle told investors it was returning to its core private equity fund business, and as a result was “transferring QAM’s team and its investment to an independent entity that will serve the needs of Mayor Bloomberg and his foundation”.

Former Quadrangle employees also joining Willett Advisors are: Nick Anderson, Susannah Cahill, Brandon Johnson, Michael Kim, Tammy Kloss, Kelsey Morgan, Elena Skronikova, Erin Witmer, Liza Arguelles, Lauren Derfner, Karen Kardos, Fiona Reid, Diane Rizzo, Burt Ross and Bill Rouse.

The letter, first published by the New York Times Dealbook, added: “Having successfully built out the investment team and operating functions necessary to provide these services, Mayor Bloomberg believes creating this independent entity will allow his investment team to operate with the flexibility and privacy that he seeks.” Bloomberg withdrew $5 billion from QAM to set up the new firm, now known to be Willett Advisors.
 
Rattner left Quadrangle in early 2009 to become the car czar of US President Barack Obama's administration. He left the auto task force six months later, after he and Quadrangle became embroiled in the “pay-to-play” investigation involving New York State Common Retirement Fund.

Quadrangle has since agreed to pay New York Attorney General Andrew Cuomo and the Securities and Exchange Commission a total of $12 million to settle its cases. Earlier this month, Quadrangle accused its departed co-founder of behaving in an “inappropriate, wrong and unethical” manner when he hired political fixer Hank Morris to solicit the New York pension for a commitment.

Rattner has denied the accusations, with his attorney Jamie Gorelick saying in a 15 April statement: “Mr. Rattner does not agree with the characterisation of events. Mr. Rattner shares with the New York attorney general the goal of eliminating public pension fund practices that are not in the public interest. He looks forward to the full resolution of this matter.”

Rattner and Margolis were both unavailable for comment at press time. Spokespeople for Bloomberg and Quadrangle were also unavailable for comment.

Former Quadrangle employees also joining Willett Advisors include: Nick Anderson, Susannah Cahill, Brandon Johnson, Michael Kim, Tammy Kloss, Kelsey Morgan, Elena Skronikova, Erin Witmer, Liza Arguelles, Lauren Derfner, Karen Kardos, Fiona Reid, Diane Rizzo, Burt Ross and Bill Rouse.