By Park Hyong-ki
Goldman Sachs in Seoul is facing an exodus as an increasing number of its investment bankers are leaving the company for private equity firms, according to industry sources.
It is common to see investment bankers switching sides within the industry.
But almost all, especially those who had worked trying to sell assets to potential buyers, want to go "where the action is" ― the buy-side where they can be the buyer, the investor and the go-getter, they said.
"It is normal to see investment bankers and M&A advisers wanting and moving to private equities to call the shots," said a private equity source.
Investment banking is about trying to source deals, pitching and selling assets to potential suitors, and obviously, private equity funds are about bidding for those assets on behalf of their investors.
There are also an increasing number of cases of investment bankers and even private equity investors leaving their firms to start their own buyout funds, industry sources said.
Notably, Lim Suk-jung, a former JP Morgan investment banker, launched SJL Partners, one source noted.
Lim's most recent deals included the acquisition of U.S.-based Momentive Performance Materials by a consortium led by KCC, a local construction materials maker, which sealed the deal last year. Lim's SJL was part of the consortium.
Also, Choi Dong-suk, the chief executive of EastBridge private equity, used to be the head of Goldman Sachs' investment banking in 2014. He joined the private equity company in 2017, another industry source noted.
Around 10 investment bankers and M&A advisers such as Choi left Goldman Sachs over the past two years, according to a local news report. Goldman Sachs declined comment.
"The growing private equity market is one of the reasons attracting investment bankers to join buyout funds," the source said, citing a report by McKinsey's research.
McKinsey said in its research report that Korea's private equity market is Asia's third largest, amid increasing deals.
There are four reasons behind this robust growth.
A growing number of first-generation business owners have been seeking to exit by selling their businesses to private equity funds.
Conglomerates have been divesting their assets due to antitrust regulations. Multinational companies have sold their Seoul units as their headquarters faced financial difficulties.
Also, private equity funds have offered higher returns on investment than those of stocks, McKinsey Research explained.
Goldman Sachs in Seoul is facing an exodus as an increasing number of its investment bankers are leaving the company for private equity firms, according to industry sources.
It is common to see investment bankers switching sides within the industry.
But almost all, especially those who had worked trying to sell assets to potential buyers, want to go "where the action is" ― the buy-side where they can be the buyer, the investor and the go-getter, they said.
"It is normal to see investment bankers and M&A advisers wanting and moving to private equities to call the shots," said a private equity source.
Investment banking is about trying to source deals, pitching and selling assets to potential suitors, and obviously, private equity funds are about bidding for those assets on behalf of their investors.
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| gettyimagesbank |
There are also an increasing number of cases of investment bankers and even private equity investors leaving their firms to start their own buyout funds, industry sources said.
Notably, Lim Suk-jung, a former JP Morgan investment banker, launched SJL Partners, one source noted.
Lim's most recent deals included the acquisition of U.S.-based Momentive Performance Materials by a consortium led by KCC, a local construction materials maker, which sealed the deal last year. Lim's SJL was part of the consortium.
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| Goldman Sachs logo / Korea Times file |
Around 10 investment bankers and M&A advisers such as Choi left Goldman Sachs over the past two years, according to a local news report. Goldman Sachs declined comment.
"The growing private equity market is one of the reasons attracting investment bankers to join buyout funds," the source said, citing a report by McKinsey's research.
McKinsey said in its research report that Korea's private equity market is Asia's third largest, amid increasing deals.
There are four reasons behind this robust growth.
A growing number of first-generation business owners have been seeking to exit by selling their businesses to private equity funds.
Conglomerates have been divesting their assets due to antitrust regulations. Multinational companies have sold their Seoul units as their headquarters faced financial difficulties.
Also, private equity funds have offered higher returns on investment than those of stocks, McKinsey Research explained.
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