Wall Street: Goldman’s M&A plans are BIG

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10 THINGS ON WALL STREET

Halfway there! Dan DeFrancesco in NYC. After reading this story about a soccer team refunding its fans following a dreadful performance, I'm doing the math on how much I'm owed as a lifelong fan of the Jets, Mets, and Knicks. I reckon I might be a billionaire at this point. 

Today, we've got stories on First Republic's Achilles' heel, why it should be easier to hire technologists now, and Credit Suisse's onboarding plans.

But first, go big or go home. 


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linda evangelista

1. Aiming for the fences.

Supermodel Linda Evangelista famously told a reporter she wouldn't "wake up for less than $10,000 a day."  

Goldman Sachs' M&A team operates under a similar mandate, albeit with a few more zeros. 

Insider's Carter Johnson has an update on the dealmaking strategy at the high-profile bank.

Goldman's dealmakers are targeting mega deals — those over $10 billion — as a way to get things back on track, according to Carter's sources

That, along with a letter sent by Stephan Feldgoise, Goldman's cohead of global M&A, to Goldman's alumni network (imagine hitting "reply all") shed some light on how the top M&A bank views the lull in the market. You can read Feldgoise's full letter here.

Look, I'm all for working efficiently. The biggest deals come with the largest fees. Why bother stressing over 10 $1 billion deals when you can just do a $10 billion deal?

That strategy makes sense during normal market circumstances. But, as the old saying goes, beggars can't be choosers. It's not just the M&A market that's facing issues. Goldman has had a tough go of it the past few quarters, and it could use any help it can get.

I'm not suggesting Goldman start canvassing mom-and-pop businesses for deals. But if mega deals don't start coming down the pipeline soon, one wonders what Goldman will do. 

It's also worth remembering that they're not alone at the top.

The bank has held the top spot on the year-end M&A league tables for decades, but it is hearing footsteps. Depending on who you ask, JPMorgan could also make a case for the M&A crown after this past quarter.

More on Goldman's M&A strategy amid an industry drought.


In other news:

A man rides a bicycle past the First Republic Bank branch in Santa Monica, California.

2. First Republic's wealthy clients could also be its undoing. The bank's ultra-low-rate mortgages for the uber-rich are proving to be a major pain point on its balance sheet. More on why that's such an issue.

3. Some potential summer reading on PE. Gretchen Morgenson and Joshua Rosner examine the impact private equity has had on the US with their new book, "These Are the Plunderers: How Private Equity Runs — and Wrecks — America." But Columbia Business School professor Jonathan A. Knee came away disappointed. Here's why.

4. A PE-backed firm is profiting off FDIC insurance caps. IntraFi, which is owned by Blackstone, makes a tidy profit helping its customers keep their large deposits insured via a network of banks. But in the wake of SVB's collapse, that business is at risk, The American Prospect reports. More here.

5. Credit Suisse is onboarding its new hires and interns. Wait, what? The bank, astonishingly, has not changed its plans for its summer interns or graduate hires, eFinancialCareers reports. Read more on the hires.

6. If you're in the market for a technologist, now is the time to hire. The mass layoffs in Big Tech have employees so on edge that they're easier to poach, according to one tech executive. More on Intuit CEO Sasan Goodarzi's recruiting philosophy.

7. Ken Griffin is considering his options among GOP candidates. The billionaire hedge-fund manager seems to still be on the fence about whether he wants to fully support Florida Governor Ron DeSantis, The New York Times reports. For more on Griffin's increased interest in politics, check out this profile.

8. From NYC to SC. After more than a decade in New York City, Michelle Gross and her husband relocated to South Carolina's Lowcountry. Here's why she's never going back.

9. If you fly Delta, be prepared to get bumped. Bad news for travelers: Delta has plans to increase how often it overbooks its flights, per the airline's president. (Fun!) This is why.

10. Time for some spring cleaning. We could all do with a bit of purging in our homes. So take these tips from a professional declutterer. Here's a plan of attack for getting rid of the stuff you don't need.


Curated by Dan DeFrancesco in New York. Feedback or tips? Email ddefrancesco@insider.com, tweet @dandefrancesco, or connect on LinkedIn. Edited by Jeffrey Cane (tweet @jeffrey_cane) in New York and Nathan Rennolds (tweet @ncrennolds) in London. 

 

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