Tarnished Steel

Steel Partners tried to force a potentially disadvantageous restructuring on fund investors. Warren Lichtenstein’s firm has had to backtrack, offering investors in its Steel Partners II fund some alternative options. Whether it’s enough remains to be seen. But the dynamic reflects the new balance of power with hedge fund investors in the driving seat. Late last year, Lichtenstein froze redemptions on the fund after it lost nearly 40% and investors asked to withdraw 38% of the $1.2bn remaining. T...