By Justin Baer
Goldman Sachs Group Inc. promoted John Waldron to co-head of
investment banking, replacing John S. Weinberg, a vice chairman
whose father and grandfather once led the Wall Street firm.
Mr. Weinberg, 57 years old, will move to a new
client-development role. He will remain one of Goldman's three vice
chairmen. Mr. Waldron, 45, joined Goldman in 2000 and was named a
partner two years later. He most recently served as head of
investment banking services, overseeing a group of bankers whose
client relationships cut across numerous industries.
Mr. Waldron's promotion comes as Goldman's investment banking
arm enjoys one of its best years on record. The firm's merger
bankers passed a rare milestone earlier this month, advising
companies on deals with a combined value of more than $1 trillion.
It was the first time any investment bank had reached that tally
since 2007. As the year draws to the close, Goldman remains out
front of rivals J.P. Morgan Chase & Co. and Morgan Stanley in
total advisory revenue.
"John [Waldron] has helped us to develop many of the firm's most
important client relationships and to drive our global coverage
strategy, " wrote Lloyd Blankfein, Goldman's chairman and chief
executive, and Gary Cohn, the firm's president, in a memorandum to
employees Thursday.
The Weinberg banking dynasty at Goldman, which began when Sidney
Weinberg joined the firm more than a century ago, played a major
role in forging and then maintaining Goldman's long run as an
investment-banking powerhouse. Sidney Weinberg was the firm's
senior partner from 1930 to 1969, and his son, John L. Weinberg,
ran Goldman in the 1970s and 1980s.
The younger John Weinberg has preferred to remain first and
foremost a banker to group of loyal clients, and an important voice
in setting Goldman's culture. He's worked at Goldman at a time when
trading has become much more important to the firm's results and
Mr. Blankfein, a former trading executive, has led the company.
While Mr. Weinberg has helped run the investment banking
division since 2001, he is best known inside the firm and out for
his role as an adviser.
He had indicated to the firm's leaders that he was ready to move
out of the co-head position, opening a spot for Mr. Waldron.
David M. Solomon and Richard Gnodde will stay as co-heads of the
unit. Mr. Waldron will join them on the firm's management
committee.
Like Mr. Solomon, the New-York based Mr. Waldron came to Goldman
from Bear Stearns Cos., where he served as an adviser to hotel and
gaming companies. Even as a younger banker, he impressed clients.
Christopher Nassetta, a longtime client and now chief executive of
Hilton Worldwide, said Mr. Waldron has kept a sharp eye for detail
on his business even as his responsibilities at Goldman have
grown.
A decade or more ago, during a tense meeting in New York between
Bain Capital executives and representatives of an entity the Boston
private-equity firm was in talks to buy, Mr. Waldron spoke up to
"break the ice," said Steve Pagliuca, a managing director at Bain
Capital.
"There was an awkward silence," Mr. Pagliuca recalls. Then Mr.
Waldron broke in to ask, "How about those Red Sox?" Bain ultimately
ended up completing the acquisition.
Mr. Waldron ran the firm's media and entertainment group from
2002 to 2005, and then co-led leveraged finance. Mr. Waldron moved
to London in 2007, where he served as global co-head of financial
sponsors.
Meanwhile, Mr. Weinberg will now "focus on client development
and initiatives across our major divisions," Messrs. Blankfein and
Cohn wrote in a separate memo to employees.
"We have asked him to work with us to identify and address areas
and client relationships where we can advance our client
franchise," they wrote.
Write to Justin Baer at justin.baer@wsj.com
Access Investor Kit for The Goldman Sachs Group, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US38141G1040
Access Investor Kit for JPMorgan Chase & Co.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US46625H1005
Subscribe to WSJ: http://online.wsj.com?mod=djnwires