PE fund briefs, week of Sept. 28, 2009

Quadrangle to focus more on Asia, less on Europe

New York-based Quadrangle Capital Partners will “substantially close” its London office and pursue its European investments out of the United States, according to a letter to investors obtained by Reuters.

Quadrangle—co-founded by Steven Rattner, who left the firm earlier this year—also plans to increase resources in Asia and raise its focus on its existing portfolio to create a “heightened focus on realizations and exits,” according to the letter.

Quadrangle has invsted in movie studio Metro-Goldwyn-Mayer, cinema firm Cinemark, teleconferencing company West Corp., and Alpha Media, parent company of men’s magazine Maxim.

Quadrangle’s letter says the firm—which has an office in Hong Kong, led by Edward Sippel, which it opened in 2008—sees “opportunities for attractive investment returns” in Asia and plans to increase its emphasis there.

However, to do that, the letter said, the company has to “de-emphasize certain activities.” It will pursue European investments on a “selective basis” from the United States and will substantially close its London office, the letter said.

Gordon Holmes, who led the firm’s London office, will leave the firm because he wishes to remain in the region, the letter said. Holmes launched the London office in 2007 and led such investments as cable firm Get AS in Norway, according to Quadrangle’s website.

The letter is signed by Quadrangle co-presidents Michael Huber and Joshua Steiner, who took over at the helm in February when Rattner left to become head of the U.S. autos task force. Rattner left that role in July. Quadrangle is currently under investigation by the Securities and Exchange Commission and the New York State Attorney General’s office for its role in the alleged pay-to-play scandal involving New York State Common Retirement Fund.

Quadrangle put on hold plans to raise a third fund after Rattner’s departure and amid the financial turmoil, which made raising new money from investors tough.

Quadrangle declined comment. —Megan Davies, Reuters

PEI raises $147.7M

PEI Funds, a private equity secondaries fund manager based in new York, has raised $147.7 million from 60 investors toward a $250 million target for Private Equity Investment Fund V, according to a regulatory filing.

CDH targets $1.4B for CHina

CDH Investments has secured $750 million for its fourth private equity fund focused on growth-stage companies in China. The fund’s target is $1.4 billion.