Goldman Sachs' healthcare team is bleeding bankers as the junior ranks bemoan longer-than-usual hours and weaker bonus checks
Hi. I'm Aaron Weinman. In Dolly Parton's classic tune "9 to 5," the country and pop music pioneer said she would pour herself "a cup of ambition, yawn and stretch, and try to come to life."
Well, it seems some Goldman Sachs bankers — many of whom are also very ambitious — have taken the whole concept of 9 to 5 to the next level.
Eleven members — six first-year analysts and five associates — of the investment bank's healthcare team have left the Wall Street giant, complaining about working till 5 a.m. (probably when Dolly was yawning and stretching to "try to come to life").
To rub salt in the wound, one ex-associate pegged bonuses as being 60% lower for this group versus last year's bonus pool, according to this exclusive story from Insider's Reed Alexander and Dakin Campbell.
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1. Goldman Sachs' healthcare investment-banking team has had somewhat of a junior-banker exodus. It's the latest complaint by the bank's cohort of juniors, who in the past, have spoken up about "inhumane" working conditions and sleepless nights.
Before this latest round of departures, Goldman Sachs' healthcare investment-banking group counted roughly 60 associates and analysts in New York.
The six first-year analysts handed in their notices last Wednesday and left Goldman on the same day, a person familiar with the departures told Insider. The five associates left in recent weeks. A major factor in their decision to leave was that their bonuses were severely reduced from last year's levels.
To be sure, last year, investment-banking divisions enjoyed some of the heftiest bonus packages seen on Wall Street since the financial crisis years of 2007-2008. Bankers have burned the midnight oil since the onset of the coronavirus pandemic as companies flooded banks with M&A and capital-markets work to take advantage of rock-bottom borrowing costs.
But that script has well-and-truly flipped as rampant inflation and higher interest rates have slowed deal flow for investment banks.
Goldman Sachs' healthcare investment-banking team is indeed one of the best on the Street. It has worked on a countless number of landmark transactions, including advising Amazon on its recent near $4 billion purchase of primary-care operator One Medical last month.
With almost one-sixth of its junior team now gone, however, this much-lauded team will have to work hard to carry on its momentum this year.
In other news:
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6. Elon Musk and Jack Dorsey have had a crypto bromance stretching back years. Musk may have subpoenaed the Twitter cofounder, but they've maintained a pleasant relationship online. Here is how it started.
7. The end of cheap debt is hurting investment banks' dealmaking volumes. A season of shelved M&A has now surpassed $150 billion, according to this report from Bloomberg.
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10. LinkedIn posts have become beyond cringe-worthy in recent times. The internet is now having a field day with this artificial-intelligence tool that pokes fun at LinkedIn with aspirational posts that celebrate even the most mundane tasks.
People moves:
- Alternative credit specialist CIFC Asset Management has made two appointments in its legal and compliance team.
- Asha Richards, who has served as CIFC's deputy general counsel since 2015, has been promoted to general counsel.
- Lily Wicker, former chief compliance officer and associate general counsel at Sound Point Capital Management, has joined CIFC as a managing director, chief compliance officer, and associate general counsel.
Curated by Aaron Weinman in New York. Tips? Email aweinman@insider.com or tweet @aaronw11.
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