Conference Presentation, Product Demonstration
Investment Banking - Goldman Sachs 2020 Investor Day
- Goldman Sachs intends to expand its franchise through steady, recurring revenue streams from the sponsor business model, leveraging over $1 trillion in private equity dry powder and a projected 6,700 portfolio company exits every five-year window to drive growth over the coming decade.
- The firm aims to achieve number one rankings in investment banking fees across advisory, equity, and debt underwriting, while maintaining its top position in M&A deal share and targeting at least a top four position in debt underwriting.
- Specific market share goals include an incremental value of approximately $750 million per point and a projected 1% global market share in transaction banking within five years, which is expected to generate over $1 billion in annual revenue and more than $50 billion in deposits.
- Goldman Sachs plans to address its smaller lending footprint by enhancing debt underwriting capabilities and will launch a dedicated coverage force and junior banker pool for the $500 million to $2 billion market segment, adding 1,700 companies to its coverage universe to exceed 11,000 total.
- A high-tech, low-touch transaction banking platform is scheduled for a broad-based rollout in the second quarter of the current year to solidify leadership in this growth initiative.
- The firm has implemented and will expand diversity requirements for IPO underwriting, mandating at least one diverse board member starting July 1st and increasing the requirement to two diverse board members in 2021.
- Talent acquisition strategies include hiring seven lateral partners, recruiting senior bankers from competitors to fill gaps, and building a diverse team of diverse backgrounds through undergraduate, graduate, and lateral hiring to strengthen global execution.
- Operational plans emphasize cultural consistency, accountability across sub-segments, and leveraging decades of investment in a client-centric, teamwork-oriented culture to deliver world-class service across all geographic regions and sectors.