Goldman Sachs Bolsters M&A Leadership -- Update
February 14 2018 - 10:45AM
Dow Jones News
By Liz Hoffman
Goldman Sachs Group Inc. is promoting an industrials banker to
co-run its merger business, Wall Street's leader.
Dusty Philip will be co-head of M&A alongside Michael Carr
and London-based Gilberto Pozzi, according to a memo reviewed by
The Wall Street Journal.
Mr. Philip joined Goldman in 1991, was named a partner in 2000,
and was previously co-head of Americas M&A alongside Mr.
Carr.
He advised railroad operator Burlington Northern Santa Fe in its
sale to Warren Buffett's Berkshire Hathaway in 2009 and paint
company PPG Industries Inc. on its $27 billion hostile bid last
year for a Dutch rival.
Co-heads are the norm at Goldman, meant to foster collaboration
and ensure no executive has too much leverage over the firm.
Goldman's merger advisory business is Wall Street's leader,
regularly topping the deal rankings. It generated $3.2 billion in
revenue last year and has widened its lead over No. 2 Morgan
Stanley in recent quarters.
The deals group is looking to press its lead and contribute its
share of a $5 billion firmwide growth initiative at Goldman. It has
moved bankers to U.S. cities including Atlanta and Seattle to
cultivate relationships with local companies, and hired bankers
from rivals to fill out holes in its network.
And the firm is angling for roles on smaller deals it once
disregarded as small-time. Goldman has better than 50% market share
on mergers larger than $5 billion but just 10% on those smaller
than $5 billion, Chief Executive Lloyd Blankfein said Tuesday.
"There are revenues in these smaller transactions," he said.
Mr. Philip will be replaced by Matt McClure, an industrials
banker who currently co-heads M&A in the Americas. That will
leave Stephan Feldgoise, who left and then returned to Goldman last
year, as sole head of its U.S. deal business. Mr. Philip's global
co-head, London-based Clare Scherrer, will remain in her post.
Write to Liz Hoffman at liz.hoffman@wsj.com
(END) Dow Jones Newswires
February 14, 2018 10:30 ET (15:30 GMT)
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