Quadrangle in the News

“Vendor Tracking Tool Catching On”

hedge fund alert vendor tracking tool
A tool from Quadrangle Consulting that helps investment companies track and compare their relationships with vendors is quickly building a following.

Some 300 clients have signed up to use their program, called QDS Platform, since it rolled out in 2018. Another 100 have subscribed this year to a related service through which New York-based Quadrangle offers updates on developments at vendors and allows users to run queries on contracts their peers are considering.

QDS allows clients to upload their vendor contracts and keep tabs on those relationships. Quadrangle, meanwhile, extracts the data and allows users to compare the contracts’ provisions to provisions typical of other service providers, both as a whole and by company type.

The services user count suggests investment firms are eager to automate the process of keeping tabs on vendors, and have embraced the idea of a data-based tool for comparing those companies’ terms. QDS can, for instance, immediately inform users of automatic renewals. It can track how, and when, administrators add language to their contracts in response to new regulations.

The subscription costs $400 per month, plus a couple hundred dollars for extraction and analysis of data from each contract. The users mainly are hedge fund operators with at least $25 million of assets but include other large asset managers, along with insurers and family offices.

Quadrangle formed in 2013, offering a service aimed at positioning alternative-investment managers their financing and swap-trading arrangements. The firm is led by Michael Katz, formerly of S3 Partners and Paloma Partners.

November 20, 2019

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