Top Hedge Fund News, Member Posts, Hedge Fund Daily Indices and more!

3yrs ago Hedge Fund dealbreaker Views: 328

A Goldman partnership will not only bring precedence, but also the wealth that others associate with it.

David Solomon’s campaign to abase and erase everything that made Goldman Sachs unique, indispensable and the envy of all Wall Street continues apace. But his need to defile and destroy the one-time High Temple of Finance has its limit: It stops at the door of the partnership room.

Indeed, D.J. D-Sol may be intent on turning Goldman’s minor aristocracy into common plebs, but he’s equally concerned to MAGSPGA—Make A Goldman Sachs Partnership Great Again. To do so, he’s tamped down on his predecessors’ democratizing trends, not only naming fewer partners but ejecting the unworthy from the highest realms of the Elect.

After an uptick in retirements and a few cases of “de-partnering,” where executives are quietly stripped of the title but stay at the firm, the partnership will likely shrink to its smallest in years.

But mere exclusivity will not return to the title “Goldman Sachs partner” the fear and awe it once inspired. No: These men and women must not be mere business card-wielding warriors, but must enjoy the trappings that of right come with the rank.

Goldman’s new class of partners, to be promoted next month, is likely to be its smallest since the mid-1990s, according to people familiar with the matter. And for those who make the cut, the Wall Street firm is dangling a new financial carrot: access to profits from its private investment funds.

Partners will receive carried interest—a slice of future profits, taxed at low rates—in four of Goldman’s private investment funds starting this year, people familiar with the plans said. The firm will lend partners up to half a million dollars to increase their personal investment…. Goldman’s private funds were already open to partners on terms similar to outside investors. But carried interest is new and far more lucrative if the funds in question—which include a corporate-buyouts fund and another that buys stakes in hedge funds and other investment managers—hit minimum profit thresholds.

Wall Street’s Most Exclusive Club Is Getting Smaller. The Perks Are Getting Better. [WSJ]


Today's Hedge Fund Headlines:

Log In for More
Access Over 250K+ Industry Headlines, Posts and Updates
Not a member yet?

Join AlphaMaven

The Premier Alternative Investment
Research and Due Diligence Platform for Investors

Free Membership for Qualified Investors and Industry Participants
  • Easily Customize Content to Match Your Investment Preferences
  • Breaking News 24/7/365
  • Daily Newsletter & Indices
  • Alternative Investment Listings & LeaderBoards
  • Industry Research, Due Diligence, Videos, Webinars, Events, Press Releases, Market Commentary, Newsletters, Fact Sheets, Presentations, Investment Mandates, Video PitchBooks & More!
  • Company Directory
  • Contact Directory
  • Member Posts & Publications
  • Alpha University Video Series to Expand Investor Knowledge
  • AUM Accelerator Program (designed for investment managers)
  • Over 450K+ Industry Headlines, Posts and Updates
ALL ALPHAMAVEN CONTENT IS FOR INFORMATIONAL PURPOSES ONLY. CONTENT POSTED BY MEMBERS DOES NOT NECESSARILY REFLECT THE OPINION OR BELIEFS OF ALPHAMAVEN AND HAS NOT ALWAYS BEEN INDEPENDENTLY VERIFIED BY ALPHAMAVEN. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THIS IS NOT A SOLICITATION FOR INVESTMENT. THE MATERIAL PROVIDED HEREIN IS FOR INFORMATIONAL PURPOSES ONLY. IT DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY INTERESTS OF ANY FUND OR ANY OTHER SECURITIES. ANY SUCH OFFERINGS CAN BE MADE ONLY IN ACCORDANCE WITH THE TERMS AND CONDITIONS SET FORTH IN THE INVESTMENT'S PRIVATE PLACEMENT MEMORANDUM. PRIOR TO INVESTING, INVESTORS ARE STRONGLY URGED TO REVIEW CAREFULLY THE PRIVATE PLACEMENT MEMORANDUM (INCLUDING THE RISK FACTORS DESCRIBED THEREIN), THE LIMITED PARTNERSHIP AGREEMENT AND THE SUBSCRIPTION DOCUMENTS, TO ASK SUCH QUESTIONS OF THE INVESTMENT MANAGER AS THEY DEEM APPROPRIATE, AND TO DISCUSS ANY PROSPECTIVE INVESTMENT IN THE FUND WITH THEIR LEGAL AND TAX ADVISERS IN ORDER TO MAKE AN INDEPENDENT DETERMINATION OF THE SUITABILITY AND CONSEQUENCES OF AN INVESTMENT.