*DJ Goldman Shuffles Private-Equity Executives -- Sources
(MORE TO FOLLOW) Dow Jones Newswires
April 18, 2019 08:47 ET (12:47 GMT)
*DJ Long-Serving Head Rich Friedman Stepping Back -- Sources
(MORE TO FOLLOW) Dow Jones Newswires
April 18, 2019 08:47 ET (12:47 GMT)
*DJ Goldman Eyeing Broader Reorganization of Alternative-Investing Activities -- Sources
(MORE TO FOLLOW) Dow Jones Newswires
April 18, 2019 08:47 ET (12:47 GMT)
DJ Goldman Shuffles Private-Equity Executives -- Sources
By Liz Hoffman
Rich Friedman, one of Goldman Sachs Group Inc.'s longest-serving partners and head of its private-equity arm, is stepping back as part of a reorganization of the firm's alternative-investing businesses, according to people familiar with the matter.
Mr. Friedman, who joined Goldman in 1981 and was named a partner in 1990, will relinquish day-to-day oversight of the merchant bank, where Goldman does most of its private-equity investing, the people said. He will hand it over to Sumit Rajpal, who currently oversees corporate-buyouts funds, and Andrew Wolff, based in London, the people said.
Chief Executive David Solomon has ordered a review of Goldman's alternatives-investing business, which comprises more than $100 billion in assets and is scattered in various pockets across the firm. Built over decades of ad hoc planning and guarded jealously by their owners, their results are commingled in an "investing and lending" reporting segment that shareholders tend to dismiss as opaque and unpredictable.
The Wall Street Journal reported last month that Goldman was considering combining the two largest of those businesses -- the merchant bank, run by Mr. Friedman, and a special-situations group run by Julian Salisbury -- to create a more focused unit similar to a smaller KKR & Co. or Blackstone Group LP that shareholders could better understand and might value more richly.
It also plans to raise new private-equity funds that it can charge fees to manage, and over time invest less of its own cash directly into deals.
As part of the reshuffling, Mr. Salisbury will gain new oversight for broader real-estate investing across the firm, the people said. Real estate is a hot asset class and postcrisis rules that limited banks' ability to do private-equity investing are laxer there.
Write to Liz Hoffman at liz.hoffman@wsj.com
(END) Dow Jones Newswires
April 18, 2019 08:47 ET (12:47 GMT)
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