goldman’s-eric-lane-leaves-for-tiger-global-in-surprise-exit

Goldman’s Eric Lane Leaves for Tiger Global in Surprise Exit

Business

(Bloomberg) — Eric Lane, the co-head of Goldman Sachs Group Inc.’s asset-management business, is quitting the firm to join Chase Coleman’s Tiger Global Management, just a day after news that a pair of senior consumer bankers are leaving the lender for a fintech startup.

Lane is departing less than six months after taking over Goldman’s newly expanded asset-management business along with Julian Salisbury, according to an internal memo seen by Bloomberg. The 25-year veteran of Goldman Sachs and a member of its most important decision-making body will join hedge fund Tiger Global later this year as president and chief operating officer, according to a letter to investors Monday.

“In this newly created role, Eric will work across the firm, helping us manage the organization with a particular focus on our clients and the infrastructure that supports our platform,” the firm said in the letter, seen by Bloomberg. Lane will report directly to Coleman and venture capital head Scott Shleifer.

A representative for New York-based Tiger Global declined to comment. The firm manages about $50 billion, with roughly half in its hedge fund business and the rest in its venture capital unit.

Goldman’s asset-management division, with $8 billion of annual revenue, is a critical focus for Chief Executive Officer David Solomon, who hopes to rake in more client assets to generate a steady stream of fee income for the bank. That and the consumer business are two new strategic projects that the bank has hoped will grow fast enough for it to reduce reliance on the firm’s traditional strengths in investment banking and trading.

Lane’s surprise move comes just a day after people with knowledge of the matter said that Omer Ismail, the head of Goldman’s consumer bank, is leaving to run Walmart Inc.’s fledgling financial-technology startup. Ismail will bring along David Stark, who helped ink Goldman’s partnership with Apple Inc. and oversaw its tie-ups with JetBlue Airways Corp. and Amazon.com Inc.

Goldman in September shuffled business lines and announced a raft of management changes, including that Lane and Salisbury would lead the combined asset-management and merchant bank. Lane previously ran the investment-management group, which also included Goldman’s consumer and wealth operations.

Tiger Global assets have soared over the years, and its performance has been consistently strong. The hedge fund returned 48% last year alone. Coleman topped Bloomberg’s list of the top-earning hedge fund managers in 2020.

(Updates with Tiger investor letter starting in third paragraph.)

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