You are on page 1of 15

GOLDMAN SACHS

History
Goldman Sachs was founded in 1869 by German Jewish immigrant Marcus Goldman The company made a name for itself pioneering the use of commercial paper for entrepreneurs and was invited to join the New York Stock Exchange in 1896. It was during this time that Goldman's son-in-law Samuel Sachs joined the firm which prompted the name change to Goldman Sachs. Is headquartered in the Lower Manhattan area of New York City. In April 2004 Goldman Sachs launched its operation in Bangalore, India.

Financial Highlights
Revenue : US $37.67 Billion (2006) Revenue Growth (1 yr) : 59.80% Net income : US $9.54 Billion (2006)

Earnings per share : $19.69


Employees (2006) : 30,335 The company ranks #1 in Annual Net Income when compared with 86 peers in the Investment Services sector.

KEY EXECUTIVES
Mr. Lloyd C. Blankfein , 52 Chairman, Chief Exec. Officer and Managing Director. Mr. David A. Viniar , 51 Chief Financial Officer, Head of the Operations, Technology & Fin. Division, Exec. VP and Managing Director

Mr. Brooks Entwistle , Chief Exec. Officer of Goldman Sachs (India)


Mr. Gregory K. Palm , 58 Exec. VP, Co-Head of the Legal Department, Managing Director. Mr. Esta E. Stecher , 49 Exec. VP, Sec., Gen. Counsel and Co-Head of the Legal Department.

Major Holders
% of Shares Held by Owners - 3% % of Shares Held by Institutional & Mutual Fund Owners - 67% Number of Institutions Holding Shares -1022

Company Overview
Goldman Sachs is a leading global investment banking, securities and investment management firm. It provides a wide range of services worldwide to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals.

Business Overview
To grow three core businesses Investment Banking is divided into two divisions and includes
Financial Advisory (mergers and acquisitions, restructurings and spin-offs) and Underwriting (public offerings and private placements of equity, equity-related and debt instruments).

Trading and Principal Investments The segment is divided into


three divisions and includes Fixed Income, Currency and Commodities (trading in interest rate and credit products, mortgage-backed securities and loans, currencies and commodities and derivative products)

Asset Management and Securities Services It is separated into


two divisions, and includes Asset Management, which provides large institutions and very wealthy individuals with investment advisory, financial planning services, and the management of mutual funds, as well as the so-called alternative investments (hedge funds, real estate funds, and private equity funds). The Securities Services division provides brokerage and financing services.

Merchant Banking
Using the same investment techniques that help their clients succeed, Goldman Sachs' Merchant Banking Division invests the firm's own capital, as well as capital raised from outside investors, in corporate and real estate assets worldwide.

As one of the largest private global investors, the Merchant Banking Division has invested approximately $43 billion in equity around the world since 1986.

Services
The Merchant Banking division invests in corporate and real estate assets worldwide through Principal Investment Area (PIA) pursues corporate investment
opportunities worldwide.

Real Estate Principal Investment Area (REPIA) invests


proprietary capital in real estate assets.

Urban Investment Group (UIG) invests firm capital in


underserved markets in the United States.UIG invests equity and mezzanine capital in minority-owned or managed businesses as well as in inner-city real estate.

Infrastructure Investment Group (IIG) pursues direct


investments in infrastructure and infrastructure-related assets and companies, investing capital from the firm and outside investors.

Real Estate Alternatives Group (REA) focuses on providing


investors with focused real estate investment vehicles across the spectrum of real estate product.

The way they operate


Operations is at the core of Goldman Sachs. For every trade agreed, every new product launched or market entered, every transaction completed, it is Operations that enables business to flow.

Operations develops the processes and controls, and helps to specify the systems that deliver accuracy, timeliness and integrity to our businesses.
Working closely with all our divisions around the world, Operations turns ideas into business realities.

Clients
Mittal Steel On the $34 bln acquisition of
Arcelor, they acted as lead M & A advisors, public cash and share offer.

Bank of China They are the joint global coordinator and orchestrate the marketing process.

Karstadt Quelle Europes largest department


store.

Client relationship
Partner with the business to ensure that all clients receive superior top-to-bottom service Partner with other divisions to support internal clients

Provide invaluable knowledge of markets, products, trade flows, system architecture and internal tools used to provide best-in-class service

Recent Ventures
Goldman, Merrill Lynch pick up 5.7 pc in Rajesh Exports Goldman Sachs and Merrill Lynch have picked up a total of 5.7 per cent stake in Rajesh Exports Ltd, a gold jewellery exporting company. Goldman Sachs, Merrill Lynch invest in Intellivisions Software Intellivisions develops and manufactures self-service terminals for customer service automation in the banking and telecom industry. Goldman Sachs, UBS acquire 6.28% in Shrenuj The firm has bought 3.19% of companies equity capital. Shrenuj is a name to reckon with in the international diamond and jewellery trade. Entry of global investment arms into the company has resulted in good liquidity in the stock.

Competitors
Bear Stearns - USA Citigroup - USA Credit Suisse - Switzerland Deutsche Bank - Germany JPMorganChase - USA Lehman Brothers - USA Macquarie Bank - Australia Merrill Lynch - USA Morgan Stanley - USA

Findings
One highlight of our findings was the remarkable growth potential for India. While investors and corporations have focused intensively on China, India could potentially be a bigger growth story over the long run.