Goldman Sachs Appoints External Co-Head in Unusual Move

Goldman Sachs has made an unusual move by appointing Simon Lyons as co-head of UK investment banking, alongside Nimesh Khiroya. Lyons was previously at Ardea and PJT Partners, where he was a founding partner in 2015. The appointment comes as Goldman Sachs has seen its highest market share in EMEA deals for a decade and is ranked number one in UK M&A.

The decision to hire Lyons externally may indicate that Goldman Sachs sees the potential for revenue growth in the EMEA region, which it believes can be tapped by investing in a strong franchise. Historically, the firm has preferred to build its talent pipeline internally rather than making lateral hires at partner level. However, this approach carries risks, as every external hire takes up a partnership slot that someone else might have been hoping for.

The move is part of a broader trend of Goldman Sachs bringing in experienced bankers from outside the firm. This has sparked concerns about the destabilizing effect on the team and the potential impact on Goldman's reputation for building its own talent pipeline.