Goldman Sachs’ incoming chief, David Solomon, is shaking things up.
Marty Chavez, the investment banking giant’s CFO until now, is being reassigned to lead the firm’s securities arm.
The move comes in the wake of Chavez facing an unsatisfactory 18-month stint in his latest role, especially one that failed to excite investors and analysts. A former technologist, analysts were of the view that finance was not his forte.
“Marty is not a person who came up through the finance organization. With this, it looks like he’s going back to something that looks like much more of a natural fit,” research analyst Guy Moszkowski said in an interview.
In a memo sent to employees, here’s what Goldman’s CEO Lloyd Blankfein and its incoming boss David Solomon wrote:
We are pleased to announce that John E. Waldron will become the president and chief operating officer of Goldman Sachs, effective October 1, and that Stephen M. Scherr will become chief financial officer, effective November 5 following the filing of our third quarter results.
John and Stephen will work closely with David to develop and execute our strategy, grow our client franchise, ensure strong risk and capital management and safeguard our unique culture. Having worked together over the course of their careers at the firm in a number of different businesses, John and Stephen bring the right complement of skills to help lead the firm through their respective roles.
John has played a critical role in sustaining and enhancing our global position in M&A and underwriting since being named co-head of the Investment Banking Division (IBD) in 2014. As a long-tenured leader in IBD, John has helped us to develop many of the firm’s most important client relationships and to drive our global coverage strategy.
John previously served as global head of Investment Banking Services/Client Coverage for IBD. Prior to that, while based in London, he was global co-head of the Financial Sponsors Group from 2007 to 2009. Before that, he co-headed Leveraged Finance from 2005 to 2007 and co-headed the Media and Entertainment Group in IBD from 2002 to 2005. He joined Goldman Sachs in 2000 and was named managing director in 2001 and partner in 2002.
John serves on the Management Committee, Firmwide Client and Business Standards Committee, Firmwide Business Planning Committee, IBD Executive Committee and IBD Client and Business Standards Committee.
Stephen has been chief executive officer of Goldman Sachs Bank USA since 2016. He is also head of the Consumer & Commercial Banking Division. In that role, Stephen has led our effort to build a digital consumer business that represents a significant opportunity to serve millions of new customers and meaningful new growth for Goldman Sachs.
He chairs the Goldman Sachs Bank USA Management Committee and serves on the Management Committee, Firmwide Risk Committee, Firmwide Finance Committee and Firmwide Investment Policy Committee.
Stephen joined Goldman Sachs in 1993 as an associate in the Financial Institutions Group. In 1996, he transferred to Emerging Markets/Capital Markets in the Fixed Income, Currency and Commodities Division. Over the next several years, Stephen held a number of senior roles across the firm, including as chief operating officer for the Investment Banking Division, global head of the Financing Group from 2008 to 2014, head of our Latin American business and the firm’s chief strategy officer from 2014 to 2017. He was named managing director in 2001 and partner in 2002.
John and Stephen have been exceptional leaders and have distinguished themselves in their commitment to our culture of teamwork and client service. Please join us in congratulating both of them and wishing them continued success.
This Ex-NBA All Star May Just Have The No.1 Wine In The World
Former NBA All Star Yao Ming had his career cut short by injuries. But he’s rebounded, big time, with big scores off the court.
(LOL at these sports cliches…)
Ming founded Yao Family Wines in California’s Napa Valley in 2011. Which is not a major deal; lots of celebrities make mediocre wines that eventually drop off.
Anyway, back in 2015, Ming raised $2M on crowdfunding platform Crowdfunder to scale his own wine. Here’s how it looked back then, according to the Wall Street Journal:
With Beijing’s anti-corruption campaign sapping demand for expensive wines, Yao Family Wines, the biggest seller of high-end Californian wine in China by value, is shifting its focus from Chinese banquet tables to U.S. steak houses. Now 15% of the winery’s revenues come from the US, compared to almost zero at the beginning in late 2011. The company said it has managed to grow its sales in a tough environment, without giving more details.
And now, Ming’s wine—legitimately—is now one of the best in the world, with an approval rating of 95+ from the world’s single most influential wine critic, Robert Parker of The Wine Advocate.
Here’s what he wrote:
“I am aware of all the arguments that major celebrities lending their names to wines is generally a formula for mediocrity, but that is not the case with Yao Ming. These are high-class wines. The two Cabernets are actually brilliant, and the Reserve bottling ranks alongside just about anything made in Napa.”
Yao Ming making legitimate bid to become best athlete winemaker. This wine, which came out last month, got a 95+ from famed wine critic Robert Parker. Bottle costs $250. Sold in US & China. pic.twitter.com/yqDQSO9bxz
— Darren Rovell (@darrenrovell) December 5, 2018
Another influential voice of wine the Wine Enthusiast went even further, awarding his wines 97 and 95 points respectively.
Check out his winery here.
Uber Goes Public And Immediately Loses Over $6B In Value
UBER just went public in the most anticipated IPO since Facebook went to Wall Street.
The ride-sharing company officially hit the New York Stock Exchange Friday, pricing its IPO at $45 a share, which put the ride-hailing company at $81B at 180M shares available—far below their initial $120B projection in their filings.
Uber ended the day at $41.60—down nearly 8% from its listing price, leading to a $6B+ valuation loss.
For perspective: Uber’s last private valuation was about $76B. It’s now worth $75.5B.
Uber’s not the only one crashing out the gate. Even though Lyft beat Uber to the IPO punch, since going public in March, Lyft has lost 29% of its value.
Uber’s been plagued by a number of issues, compounded by the fact that none of the tech unicorns are profitable yet. Uber, for instance, burned through $1B in Q1 alone.
“They waited too long to go public,” Former NYSE President Tom Farley said. “Some of the issues they had — I’ll call it culture — some of the issues they had with their culture would’ve been solved in a public market. You wouldn’t show up on a quarterly conference call every quarter and have three or four new stories like they were having for 18 straight months.”
Did Uber IPO too late?
Although early investors made out like straight BANDITS—just look at Lance Armstrong—investors in the later stage haven’t been as lucky.
“I mean, you look at all the money invested in Uber — 25 billion bucks,” Farley said. “Their pre-money valuation last night was [$]73 [billion]. This is a 2.8x investment.
“That’s great and all, but the initial investors got 10,000 times their money. So the recent people, they haven’t been making money. This is a company that has needed public discipline, this is a company that has needed a public currency, and it’s a company that should have gone public three or four years ago.”
Morgan Stanley Just Released Its List Of Top 10 Companies They’re Investing In
Morgan Stanley just announced the second cohort of its Multicultural Innovation Lab, an accelerator program for technology and technology-enabled start-ups in the post-seed to Series B funding rounds.
The program—now in its second year—targets companies with a multicultural or woman founder, co-founder, or any Chief (insert) Officer in charge of what it calls “innovative solutions across sectors.”
According to various studies, female founders, founders of color—and both—receive as little or less than 1% of venture capital funding—a gap Morgan Stanley says it wants to bridge.
“There is a compelling business case for investing in startups led by women and multicultural founders, yet, as found in our recent report, there is a large market inefficiency to accelerate businesses led by these founders,” Managing Director Alice Vilma says. “We are working to directly address this funding gap, one cohort at a time.”
With less than 3% admitted into the program, each startup will take a seat on its on floor inside Morgan Stanley’s global headquarters in Times Square, New York.
In addition, the companies funded receive pretty precious billboard space all over Times Square. It’s real fancy.
Here are the 10 companies that were selected: