The Goldman Sachs unit is seeing high-profile exits under the leadership of Mark Nachman

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On the money

by Lydia Moynihan

August 31, 2023 | 4:36 pm

David Solomon isn’t the only blunt chief at Goldman Sachs — and the Wall Street giant’s asset management division has cut staff as a result, sources tell On The Money.

Marc Nachmann — a hardline banker whom CEO Solomon appointed last October as global head of asset and wealth management — has seen the flight of a series of senior executives on his watch and could soon see another exit, On The Money has learned.

Sources said Nachman alienated some of the more experienced executives, who called him “cold-hearted” and a “one-man show”. They add that Nachman – who has earned a reputation for cutting costs – is liked by Solomon but not by the people who work for him.

“Mark works very differently from other company executives,” said one Goldmanet employee. “He doesn’t have a team, it’s his way or the highway.”

There was talk at Goldman’s 200 West St. Manhattan headquarters that Lawrence Stein — the group’s executive vice president and chief operating officer — could be the next partner Nachmann “fires”, according to the sources.

This is despite the fact that last October Goldman’s chief operating officer John Waldron highlighted Stein and Nachmann as partners in a major project to modernize the unit’s technology platform.

“The combination of Laurence and Marc are two big players in the company and they can really make this work as a unified business platform.” Waldron said on time.

Ten months later, a source said, “Lawrence is very unhappy,” noting that under Nachman his role has been downplayed, particularly “because of his intelligence and the extent of experience and knowledge he brings.”

“Mark has worked with our broader leadership team to develop strategy and bring partners together to lead and execute,” Stein told On The Money.

Solomon noted that AWM – a division created as part of a reported move to reorganize the bank’s structure to “Mini Blackstone– is key to his strategy because he can shore up profits when deal closing is slow and markets are volatile.

“The business partners fully support and participate fully in our strategy,” Tony Fratto, a Goldman Sachs spokesman, told On The Money on Thursday.

“Mark has been leading this effort, including the recruitment and retention of exceptional talent,” Fratto added. “This year he laid out a clear strategy for the business, and we are achieving and exceeding our goals.”

If Stein exits, he will follow in the footsteps of Julian Salisbury, former chief investment officer at AWM; Luke Sarsfield, former Commercial Director; and Mike Koester, former co-president of Alternatives.

It is unclear where Stein would go in the event of his departure — one insider speculated that his former colleague Salisbury might bring him to Sixth Street Capital, where he is now a partner and co-CEO.

It remains unclear where Sarsfield has gone after his departure from Goldman.

Another source noted that the wealth management side of the division has remained largely unscathed.

Global Head of Wealth Management Tucker York and Chief Investment Officer Charmin Moussavar-Rahmani remain with the firm.