Wall Street: Ex-Goldman banker’s big bet

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TGIF! It's Dan DeFrancesco checking in from NYC.  Well, there you have it folks, Elon Musk is officially Twitter's new owner, bringing a close to months of costly litigation. However, the drama isn't over just yet, as sources say Musk has already fired at least four top execs, including CEO Parag Agrawal.

Speaking of Elon, we've got thoughts from one fintech executive on why he's our best bet for building a US super app, an inside look at the man tasked with leading Credit Suisse's spin-off investment bank, and why young, aspiring PE employees aren't necessarily all about the money

But first, when betting on yourself pays off big. 


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Gregg Lemkau from Goldman Sachs, Michael Dell, and Bryon Trott in front of tan checkered background with blue squares and piles of money 4x3

1. Gregg's billionaire bet

A high-profile position at one of the most prestigious banks on Wall Street. A Rolodex of the some of the wealthiest people in the world. And a great head of hair.

What more could a banker ask for?

Gregg Lemkau seemingly had it all, which is why many were surprised at his decision to end his 28-year tenure at Goldman Sachs to run MSD Partners, Michael Dell's investment firm, in late 2020. 

Nearly two years later, Lemkau has silenced any doubters by orchestrating a merger between MSD and merchant bank BDT & Company. Lemkau will serve as co-CEO with BDT founder and CEO Byron Trott of the new firm, which will target rich families and founders.

While the deal was a Goldman reunion of sorts — in addition to Lemkau and Trott, Ardea Parters, which advised the firms, is chock full of former Goldman bigwigs — it's also an interesting case study in the speed at which the "new money" has looked to diversify.

Insider's Hayley Cuccinello, who profiled Lemkau, told me that what stood out to her was how fast Michael Dell's family office has evolved in comparison to others in the wealth space.

Dell established MSD Capital, his family office, in 1998. A little over 10 years later, MSD Partners was established in 2009. And now, upon completion of the deal in early 2023, MSD's investment offerings will be combined with BDT's advisory services to form a new hybrid firm.

Compare that to the Rockefellers — who established a family office in 1882, started taking outside money in 1979, and rebranded as a wealth-management firm in 2018 — and you start to realize how quickly the Dell family has moved.

Whether that translates into success for Lemkau and Trott remains to be seen. There is no denying the cachet Lemkau holds among some of the most wealthy people in finance as evidence in their willingness to sing his praises in our story. 

Personally, I'm hoping Lemkau will rely on a former key Dell spokesperson to attract new clients.

Click here to read more about Gregg Lemkau's ascension at Goldman Sachs and his decision to leave.


In other news:

2-8a Rutland Gate.

2. Credit Suisse finally announced its restructuring plans, and a familiar face is playing a key role. Former longtime Citi executive Michael Klein will serve as CEO of CS First Boston, the investment-banking arm of the embattled Swiss bank that is being spun off. Here's everything you need to know about Klein

3. If you're upset about the Elon Musk-Twitter deal, you're gonna hate this prediction. A fintech executive believes the billionaire has the best chance at standing up a super app in the US. Here's his thinking.

4. A key ally of Bank of America's ex-COO has left the firm. Alexandria Taylor spent nearly 20 years at BofA in various HR functions, working closely with Tom Montag. Read more about her departure and where she landed

5. We mapped out how NYC's new pay-transparency law will impact finance jobs. The law, which comes into effect next month, won't require firms to disclose potential bonuses, but that doesn't mean Wall Street is in the clear. Here's how it could affect things

6. It's not about the money. A survey of current students and recent graduates of Columbia Business School's PE program said they don't care about compensation as much as "a work environment that's conducive to intellectual and personal development," Institutional Investor reports

7. A SoftBank-backed startup raised money just in the nick of time. California glass maker View Inc., which was on pace to run out of money after November, announced it raised $200 million in convertible senior notes. For more on the struggling startup, read our deep dive on View.  

8. Starwood Property Trust, run by billionaire Barry Sternlicht, is backing out of a deal to acquire a mortgage company. The company cancelled plans to acquire mortgage originator Luxury Mortgage Corp, the latest signal of the impact of rising interest rates

9. The build-out in the 'burbs continues. Citadel and Blue Owl Capital are among the growing number of finance firms adding to their office space in Connecticut, Bloomberg reports. It's all part of an effort to appease workers who want to cut down on their commutes.

10. The most expensive property in London is back on the market, in case you are interested. The asking price for 2-8 Rutland Gate is $220 million, and, by the way, it needs a lot of work. Take a peak inside


Keep updated with the latest business news throughout your day by checking out The Refresh from Insider, a dynamic audio news brief. Listen here.


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

 

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