Goldman Sachs Bolsters M&A Leadership -- 2d Update
February 14 2018 - 11:37PM
Dow Jones News
By Liz Hoffman
Goldman Sachs Group Inc. is promoting an industrials banker to
co-run its merger advisory 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 Inc. in 2009 and paint
company PPG Industries Inc. on its failed $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 regularly tops Wall Street's
deal rankings.
It generated $3.2 billion in revenue last year and has widened
its lead over perennial 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 succeeded as industrials head by Matt
McClure, an industrials banker who 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.
Goldman is also hiring a senior JPMorgan Chase & Co. banker,
Chris Gallea, as an investment-banking partner, according to a
person familiar with the matter. Mr. Gallea's clients include
United Technologies Corp. and Emerson Electric Co.
Write to Liz Hoffman at liz.hoffman@wsj.com
(END) Dow Jones Newswires
February 14, 2018 23:22 ET (04:22 GMT)
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