Goldman Sachs Bolsters M&A Leadership -- Update

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 [e-mail]

(END) Dow Jones Newswires

February 14, 2018 10:30 ET (15:30 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.