New York City Mayor Michael Bloomberg is pulling roughly $5bn (€3.6bn) of personal assets from Quadrangle Group's asset management arm, according to people familiar with the situation.

The move deals a blow to the New York private equity and investment firm, which has had to deal with the departure of its co-founder Steven Rattner and an investigation by the New York state attorney general into how Quadrangle secured an investment from New York state's pension fund.