Goldman creates team of investment bankers for smaller companies
Comes amid push to broaden client base
Goldman Sachs is setting up a new team of investment bankers to serve companies worth less than $2bn, as the Wall Street giant intensifies its efforts to broaden its client base.
Chief financial officer Stephen Scherr told analysts that Goldman had already hired over 40 bankers and added over 1,000 new clients since its 2017 announcement that it would target new clients as part of a drive to boost revenues.
“We decided to expand the strategy, creating specialised team in the investment banking division to serve new clients with enterprise values of less than $2bn,” Mr Scherr said, adding that Goldman would “dedicate 100 bankers to this over time.”
More broadly, Mr Scherr said that fixed income, currencies and commodities (FICC) was a “particular focus” of a broad-based review of Goldman’s businesses. “To that end we are advancing a plan to enable FICC to improve its returns.”
He singled out commodities as an area that was being “closely reviewed” and said the firm had “identified opportunities to cut expenses from certain underperforming parts of the commodities business and increase investors in others”.
“We have already taken many of these actions and expect to continue to make refinements over time,” he added.
He stressed, however, that on FICC overall: “While we may adjust our focus and footprint in some of these areas we remain committed to serving our clients at scale.”
Mr Scherr also outlined plans to reduce the “capital intensity” of Goldman’s private equity business.