Reuters – Quadrangle Group LLC, the private equity firm focused on media and communications investments, said on Friday that the firm is launching a hedge fund.
The move reveals a growing trend of private equity firms starting hedge funds and further blurring the lines between the two types of investments. Both private equity firms and hedge funds are encroaching on each other’s territory to look for new ways to boost their returns.
Quadrangle’s formation of a hedge fund will come through the absorption of Harpoon Equity Management, LLC, a New York fund founded by Robert Donahue. Harpoon will be renamed Quadrangle Equity Investors and Donahue will join the firm as a Managing Principal, Quadrangle said in a release.
Donahue’s colleagues Ryan Brown and John Hill will join as Vice Presidents, the firm said.
Quadrangle Equity Investors will also focus on the media and communications industry.
Private equity funds buy companies or take controlling positions, restructure the business over time, and sell them later for a premium.
