Photo: Fordham University
Steve McGuinness, co-COO of Goldman Sachs’ Asset Management arm, better known as GSAM, and a 19-year veteran of the unit, is out, Investment News reports.It doesn’t come as a surprise. Though Goldman can claim superiority in most areas of the banking landscape, one area in which they’re certainly not winning is asset management.
In fact, CEO Lloyd Blankfein and COO Gary Cohn are on a personal warpath to save the flailing AM arm, and McGuinness’ departure is either a result of a re-group, or another hurdle for the division to overcome.
Once Wall Street’s biggest asset manager, GSAM is still recovering from two huge departures in 2010. The co-head of the investment division, Marc Spilker, departed in the beginning of 2010. And GSAM’s CIO, Eileen Rominger, said goodbye in December, after an 11 year tour of duty with the firm. (She’s now head of an SEC division that oversees asset managers and hedge funds.)
Guinness will officially retire April 30, according to P&I, and his co-COO, Eric Lane will take over his duties.
The heads of GSAM, Tim O’Neill and Edward Forst, sent out an internal memo with news of McGuinness’ departure last week. They said he was, “instrumental in leading the distribution teams through a very turbulent time in the financial markets, starting with the financial crisis in 2008 as well as the regulatory events of 2010,” according to P&I.
Before he was elevated to the COO role in 2008, McGuinness was also co-head of the special situations group — now the only remaining prop trading desk at the bank.
He’s a Fordham graduate and in addition to his role as co-COO of GSAM’s investment management business, is also global head of distribution. He’s a managing director and partner at GSAM, and “is responsible for facilitating communication among the firm’s regional-distribution leaders,” says Investment News.
No word on what he plans to do next.