How Goldman Sachs’ Business Divisions stack up in Partnership Class

Hiya! It’s Dan DeFrancescoChecking in from NYC Although it’s been a long and difficult week for many, we are almost there.

Today’s tap has the latest news on the FTX-Binance dramaElon’s plans turning Twitter into a fintech, how to navigate your next job interview. 

First, let’s take a look at the picks for one of Wall Street’s most exclusive clubs.

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1. Welcome to Goldman!

One of Wall Street’s most respected banks has opened its books to a select few. 

Goldman Sachs announced its latest partner classWednesday marks a tradition of identifying the crème de la crème at a firm that hires only the best. This is an event that takes place once every two years.

Only 1% of Goldman employees are granted partner status. The perks are proportional to the exclusivity of this title. (More on that here.) 

This is the third and largest class of partnerships that CEO David Solomon has selected. with 80 new partners named. If you’re interested in learning more about the new partners, we profiled five of the most interesting ones here.

When I wrote about the upcoming class a few weeks agoDakin Campbell, Insider’s chief finance correspondent, gave me his thoughts on what to expect. Dakin — the foremost expert on Goldman Sachs (my words, not his) — astutely predicted this class would likely be Solomon’s largest as the bank looks to restock its ranks.

Because editorship is all about relying upon people who are smarter then you, I decided that I would go back to the well and ask Dakin some top-ofthe-mind thoughts.

27 partners (34% of total class).

The takeaway:This should come as no surprise in many ways. Trading has been one of Goldman’s crown jewels. Dakin pointed out that Goldman has made a major push to less rely on trading under Solomon. This class is however a reminder of how difficult this task is. 

21 partners (26%) of total class in investment banking

The takeaway:Investment banking, which is also quite expected, makes up the second largest portion of this group. IB has been a gold mine for banks, even if this year is not taken into account. It’s only fair that those in the business are rewarded. Dakin pointed out that 60% of the class comes from IB and trading. In the context of Goldman’s decision consolidating those businesses into one group it paints a picture about how powerful that unit will be at the bank moving forward.

Asset management: 17 Partners (21% total class)

The takeaway:Dakin noted that this is the most surprising of the bunch. It’s a much larger number than one might expect. Asset management is not as glamorous as trading or investment banking, but it still generates a lot of revenue for the bank and often with fewer headaches. Goldman was the largest shareholder in 2021. $14.92 billion in net revenue from the divisionAlong with a 28% return average common equity, which was lower than the investment bank. 

6 Partners (8% of total class): Consumer and wealth management

The takeaway:Goldman’s consumer business was named the biggest casualty of the recent reorganizationAs a result, the group was merged into a unit that includes wealth management and asset management. As Dakin reported over the summerGoldman’s plans to become your neighborhood bank have not been realized as they had hoped. Dakin stated that you wouldn’t be surprised to see a wide range of new partners emerge out of the group.

Engineering, research, and back-office: 9 partners (11%)

The takeaway:Although this is not an official division of the bank, I felt it was worth breaking up this group. Rewarding revenue producers was one of Solomon’s key issues with the partnership. as Dakin has previously reported. It is difficult to know how much money they are contributing to the firm, even though back-and middle-office roles are crucial, especially in tech. Despite this, there are still some important things to consider. exodus of tech talent from Marcus last yearAnd the importance the firm has always put on engineeringIt’s quite interesting to see such an elite group of people being rewarded.

Click here to see the 80 people who just joined one of Wall Street’s most exclusive clubs.

And check out our mini profiles of five of the new partners that have had interesting career paths.

In other news

2. Walmart is promoting its digital bank to its employees. According to Insider, one is being promoted to retail giant’s employees. Here’s how they’re trying to sell employees on it.  

3. The FTX-Binance deal has been cancelled. Binance has decided to end the relationship acquiring the troubled crypto exchange. Meanwhile, Binance’s CEO Changpeng “CZ” Zhao has said a takeover of FTX would not be a “win for us,” but there is no denying that Sam Bankman-Fried’s cratering wealthCZ is now in position the top person in crypto. 

4. Real estate is in trouble. Redfin, an online real estate brokerage, announced its second round in layoffs this summer, reducing 13% of its staff. Read the full memo announcing the news. We’ve also got a rundown of the layoffs across the real-estate industry.

5. If you thought your job was difficult, you’re probably wrong.Robin Wheeler, the person assigned with this task leading Twitter’s global ad sales team. 

6. Elon is returning to his roots. The billionaire, who was part of the PayPal Mafia all those years ago, hinting at future plans for the space. including a high-yield savings account. 

7. Massive layoffs hit Meta. In a move that was unprecedented, the social-media giant, Facebook, cut 11,000 employees or 13% of its workforce. has been looming for months. Here’s some analysis on how it all went so wrong.  

8. Here are the people who are interested in Liverpool FC. A private equity firm is interested in buying one of the largest soccer clubs in the world. Here’s who could buy the club. 

9. They will ask, “Does anyone have any other questions?” Here’s how to respond when they ask you for more information. We have compiled a list of the top questions to ask at the conclusion of a job interview. We hope you don’t have to use it. but just in case. 

10. There is a lot of worry in the world right now. Here are some things that can help you relax. A specialist in men’s sexual health states that there is no standard amount of sex. Here’s why.

Keep up-to-date with the latest business news by visiting The Refresh from Insider, a dynamic audio news brief. Listen here.

Edited and tweeted by Jeffrey Cane @jeffrey_cane) in New York and Hallam Bullock (tweet @hallam_bullock) in London.