Insiders

Goldman's Top Dealmaker Is Leaving to Run Michael Dell's Investment Firm -- 2nd Update

November 16, 2020 at 12:29 pm EST

By Liz Hoffman

Gregg Lemkau, Goldman Sachs Group Inc.'s co-head of investment banking, is leaving the Wall Street bank to run the investment firm started by technology tycoon Michael Dell.

The move, first reported by The Wall Street Journal, turned heads inside the firm and across the industry. Mr. Lemkau ran the most profitable investment-banking unit on Wall Street and was well-liked both internally and by clients after a long career putting together technology and media mergers.

But he was a long shot to become chief executive one day -- current CEO David Solomon is just two years into the job, and his No. 2 is roughly Lemkau's age -- and has flirted with jobs in private equity over the years. He informed Mr. Solomon of his decision over the summer, according to people familiar with the matter.

Mr. Lemkau joined Goldman in 1992 and spent his career as a counselor to big technology and media companies. He was promoted in 2013 to co-run its mergers and acquisitions business and again in 2017 as co-head of its investment-banking arm.

Dell Technologies Inc. is a company he knows well: He worked on the computer maker's 2013 leveraged buyout, its takeover of EMC Corp. -- at the time the largest tech merger ever -- and its complicated return to the public markets two years ago.

Mr. Lemkau will be CEO of MSD Partners, which manages about $15 billion including some of Mr. Dell's fortune and has plans to grow. (It is distinct from the billionaire's family office, MSD Capital.)

He will be succeeded by Jim Esposito, who since 2016 has been a co-head of Goldman's trading division.

Write to Liz Hoffman at liz.hoffman@wsj.com

(END) Dow Jones Newswires

11-16-20 1228ET

Stocks mentioned in the article

Add to a list Add to a list 0 selected To use this feature you must be a member Log in Sign up	Price	Change	5d. change	Capi.
THE GOLDMAN SACHS GROUP, INC.	420 USD	-0.71%	+4.20%	144B
VMWARE, INC.	142.5 USD	-4.96%	-4.51%	61.52B
DELL TECHNOLOGIES INC.	124.9 USD	+3.92%	+5.53%	89.16B

Michael Dell

Michael Dell is the founder of Dell Inc., the second largest computer manufacturer in the world. With a net worth of about $ 14.6 billion, the Texas billionaire was the 44th richest man in the world according to Forbes 2011.

During the preparation of his degree in physics at the University of Texas, at Austin. Michael Dell spends all his time to the creation of PC's Limited, an IT company. PC’s Limited only manufactures custom-built computers. In 2004, Michael Dell founded the company Dell with only $ 1000.

Anxious to streamline its expenditures, Michael Dell develops an innovative strategy which, by assembling customized computers (only made-to-order) ensures to avoid costly and unnecessary inventory management. The concept really works so Michael Dell leaves the school to devote to the launch of Dell Computer Corporation. With a turnover of $ 35 billion and $ 2 billion of profits in 2002, Dell generates enormous profits.

In 2004, Michael Dell gives up his seat to Kevin Rollins as CEO but keeps the position of Chairman of the Board of Directors.

Taking advantage of the internet boom, Dell realizes nearly 50% of its business online. Every day, the company generates about $ 40 million.

But in 2007, Dell makes a succession of errors; delivery time are not guaranteed anymore, the manufacturer has to bring back nearly 4.2 million of defective batteries and HP, the main Dell’s competitor takes the first place. Michael Dell fires Kevin Rollins and takes charge.

The founder of the Texas firm manages to put Dell in the good direction but nevertheless his fortune markedly reduces because of the crisis and the decline in Dell stock prices.

Following the example of Bill Gates, Michel Dell has created “Michael and Susan Dell Foundation”, a foundation committed in education and health.

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Linked companies
Dell, Inc. Dell, Inc. Computer Processing HardwareElectronic Technology Dell, Inc. engages in the manufacture of electronic devices. Its products include laptops, desktops, tablets, thin clients, printers, monitors, software, workstations and accessories. The company was founded by Michael Saul Dell on February 1, 1984 and is headquartered in Round Rock, TX.	Chief Executive Officer
DFO Management /Private Equity/ DFO Management /Private Equity/ Investment ManagersFinance DFO Management /Private Equity/ (DFO) is a private equity subsidiary of MSD Capital Management LLC founded in 1998 by Glenn Robert Fuhrman and John Cartwright Phelan. The firm is headquartered in New York.	Founder