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Gregg Lemkau on How Investment Banking has Changed in his 28 Years at Goldman Sachs


Gregg Lemkau, co-head of the Investment Banking Division, reflects on how the industry and the firm have changed – and stayed the same – since he joined Goldman Sachs in 1992.  

This is an unofficial transcript meant for reference. Accuracy is not guaranteed.
This is extra. just Goldman Sachs when we discuss developments, curtly, shaping markets, industries in the global economy and Jake Seaward global head of corporate communication shared the firm today we special episode because were joined by Gregg Lamb Cow, whose co head of our investment banking division, but not for long Briggs them with the firm his entire career since he joined, isn't analyse back in nineteen? Ninety two he's: Anthony leaving at the end of the year for, then we want to catch up with him, get some reflections on his time Goldman and how the investment, banking, industry and the deal environment has changed since, as early days, Gregg delighted to have you here the problem, I think it's great thanks for all my soul, let's go way back to your first day, Goldman Sachs in ninety. Ninety two: what do you remember about the day or that time much
stay with June. First Mcnally do actually started ahead of animals. Training their narrow, went in and go got. My Cuban did all my people work in that I've done a deal and was told I be flying on a flight that need to go to climate and next day, which is absolutely terrifying. And cut a horrifying. I have to say, my parents emitted did they know what they're doing like business goblets actually bureau. Anything like you just got there as a guy. I guess I just got here and so why not? If I were selling a bunch of paper meals for prompting gamble MAC Hellward. I met with running water. he's right. Emergencies is just about John emergencies. At the time. Plain to matters, then we gotta be taught the whole time so that it does not go on Monday at the time, but I was stuck out of getting the door without me and we went to me the next day and it was fastened. It was a meeting Procter and gather was selling in warehouses, the buyer enjoy along pathogen table and I'd say everyone of the meeting
probably average age who, like sixty into me as a twenty two, what they look like there are a hundred honestly on average and after at five minutes, Matthau got up and left and maybe only gormans export their legitimate resistance are going around the table and one my son, introducing rules on George, whereas you, my grandfather, built the company. I bear the company for forty two years. They want around forty two years. Twenty, your story, cigars. It gives to me as Ike Craig Limburg oversight, some stolen my first year, the company. I was like our twenty at the time Actually, an amazing wasn't! Your golden throws you right into the fire, and then it was a great lesson for me because it saw like my whole first analyse you're. Just like give this absolutely more. he deserves your could handle and see what happens? we're there well, but the skin, Deals has changed dramatically during your time here. Just compare contrast the size of transactions. You worked on back then with the ones you we're done in the past year or so yeah.
It's a great, adding the book into my crew. The first deal I worked on the close of the sale of a company. They d like roofing products is forty million dollars was but the deal side the size the deal shall I go risibles ideal the time? Firstly, I work done by myself. I won the pitch now. What did it? It was a periscope company, Suddenly thirty million idea analysed The first two deals, because literally last week in my last days at the farm, a forty billion already on Monday and a thirty billion already on Tuesday selling slide the sales force in helping us to global by. I just markets a hundred times. I guess the scale which would have big is exactly on pay for the market, but deals are definitely got larger in size in scale and she's we receive now for his transactions dwarf the size of the other dominant force got yourself, businesses, definitely gotten a larger and more proper, so you covered the technology industry. Let's talk about the technology that we work with I'll see that plane,
back then, are you flew out every day are to Memphis. but there were no cell phones really at the time release not wide use and those no email. How has technology change. The way you interact with your teams in your clients at night. crazy and exchanging a bunch of ones. I think it's a lot has to be a lot more productive, as you would want and hope, and expect but I remember the early days when you would have to do a common stock comparison. You'd literally go down to the library on the twenty. Fourth, if I brought you to pull the annual reports in some cases, you go to the micro fish and printed out and get all the old financial statements and come back in Amendments NOS one, two three spreadsheet and trot a model in it seem like, is absolutely brilliant. Inside your coming, together to toward the epidemic, was and weaken printed mass nowadays and so the What has been interesting has been. There will we did is we took the commodity,
this information is hard to get an error message of the cries law that is so readily accessible raises. The barge, whose role is to do with non commodities information had been sites with extreme, makes a job more interesting, invaluable. Today There was no way now no cellphones readily available and have you recall was accommodated. Performers addicted was not you just voice. Now all the time nonstop, I still remember vividly in the early years of being, Vacation somewhere down on the island in the Caribbean and like redrafted, Let's see you pay for your long like we have started polar bears out the check my boys nothin pay, for example, was not for our two hundred. What's going on the technology makes you a lot more efficient and in some ways it lets. You work remotely a lot easier and have a little bit of flexibility, but you all I have a hard time on today. In a way you didn't them in Europe We're still does now is that one of the other paper rails, fractured, yellow, was admitted as always in the summary ignore the buyer is, it's all belong at three o clock, it be dot and you get out.
Wage and also after them stay light up. Once you're done, you dont know attracted downloaded Bobby you, then they leave your voice mail, but didn't check it, after the work, and suddenly budgetary passenger technologies impacted the life of bankruptcy, but whenever their eyes. So, when you look cross the industry that you ve worked in the investment banking industry. from emanate. Ip owes to financing would have been the biggest shifts in the industry and innovations that you ve seen over the decades. In some ways a deal still a deal, but things of oxygen pretty dramatically as well. Yes, we told them about the size and style the deal's husband, fascinating in terms of how big the garden and the pace at which transactions happen, the amount of capital that can get rays and just the pace of action We can do happen. the role of the banks have been different, also moving back to what we were doing back and Goldman Sachs. Ninety. Ninety two, three four: it was almost like a monkey. We're doing a bunch of Germany in some equally, but no one highlighted that the US never about how I remember complexity and
It was your lot more line to your house accounts, The business got bigger and scale increased, and we became lenders to archives, which can sometimes latest counterpart is to ask you something relationship just download obligated, indifferent and others we aspire. That number will mark a show. You couldn't interested and house account be sector. You had to try to do everything for everybody. Say the businesses gotten a lot more complex and tremble, the relationship with clients, as our businesses garden bigger. We rather do more things that it's the scale industry is about a massive it. So talking about how the industry goblins change? What stayed the same about the firm over your time here, maybe I started here before the IP out, and so it was
the change massively from being a private partnership to being a public company. I do not really any the thing had changed by the farmers in the size of the farm you used to feel. Like you knew everybody you didn't know, you may be sure, like you know, all your division or other partners wrong your group and get it probably still doubt so. The size and scale is changed, but the culture has that is an amazing to see how we maintained a partnership culture, even though not a true partnership. all orientation of teamwork and got a one. Firm first has contained be pervasive throughout an abortion rate, and I'm gonna be just the excellence of people. The Goldman Sachs gets exceptional people that are incredibly talented and ambitious and somehow get them all to work in a team were gone. I didn't moment whether pudding farmers locally first, and I don't know how you gonna replicate that culture, but his mental, One we ve been able to have continued to persist. Even it scale, even those who become public even have been brought in the different regions and become a much more global fund that culture
The quality of people's persisted see just about that. First trip with my Keller, haven't other men, George. You know when you look back in time what matters stood out in and really helped you get where you are today running when the biggest businesses for now to people where are the biggest influence of my career, our genes action David, Solid Endeavour, ways from a banker perspective hirlaji inside me, I wasn't analysed in the LOS Angeles office. He was a brand new partner and he continues to be the most impressive Massa Mandarin ever worked with. He knows more about their deal than anybody. Industry is more about the industry than the climbing is more at the taxes in the tax law and is more about the legal system. The lawyers me suddenly everything, so he was amazing guy to learn from it. Fire and do so with such balance and to leave almost every transact region away from with our plan, I think we did not job and the other side liking Anybody is amazing. Data should emulate. You didn't have to make an enemy, there's Ivan could actually reach transactions and everybody walk away like I've always tried there anyway.
Style approach and balance around other transactions and indeed was very different. I didn't get me David problem. We are well under way to my career and took out a seventh when we first met an, Just taken up by some backing and asked me to be. A sea are really only met once or twice before then happened to my point. Liberally avoided taken on any managing response, but I want to be a hundred percent Clyde facing into studios all day long, and he asked to do this and it was an amazing woman instruments, more matter, strategically how to run the business Amanda candidly indirectly to people and give directly back. I don't have to receive directly back I'm on a daily basis, but illustrating was really refreshing to be all the deal sullen with David. That do on how to manage oughta, be direct. How to get the organization you do what you want to do and how to think of more strategic. I'm coming out about experience. It made me much better manager and leader of businesses for the intelligent, gonna go on and run much bigger business over time.
a brief Serbs. Mentored. Many and probably I daresay a role model to some. Guiding youth here? Sends you announce you're, leaving a few weeks ago, unshaven flooded with some notes and memories. What'd, you reflect on, as you heard, from people who, and what have you learned about it? fascinating I'd say that the reaction was, overwhelming, and how do you, like emotional reaction, literally overwhelmingly amount appeal to reach out from way back your Steve, Freeman and Lloyd and power and all the people from away back in the day that reached out people who worked with me many times about the responded here: things. That struck me. Maybe one lesson coming out of it. So one of our parliament in June Sinclair the part of the health of it, ass, we tell the guy any. Robbie Nancy Learning. Remember this in two thousand and eight I sat outside your office. Scared live without you didn't fire regard just start an associate like every day when you left your office, you can stop, I'm not done the thing in and said something positive or something uplifting. You guys made me feel better like there was the one was going to end
I don't remember you are I don't remember autumn. Our dinner represent us out office, but it was mentioned that stuck with him and then the other one it was interesting was familiar with a partner in our lunch, Gee business answered you. I remember this red one spot of ip out a new and I'd call us by thy way back when they are private company. We did the investment of them publication a switch to the. U S. Team gee volume other than those that ran the ideal and rather deal bottom and one of the undertaking. But you have you picked up the phone call me and didn't believe what I might call me and said- thank you, MRS wouldn't have without new the beginning, but I also Let me do that, but he didn't like picking up the phone and saying. Thank you much to me now. I'm gone whenever we were celebrating, remember actually, work started and write the lesson All those things is as a whole. Two times. I'm sure you haven't you. you could do something like. Madam you, in doing this person on getting follows. Someone's friend change one another job, making this extra phone call, and I could be doing something about that.
using the always use. It feels like the right thing to do and you never feel like you get credit for it, makes a difference than the amount of people came back with stories like that over the years of the little about the big deal, I did not, I in former days, with the little things that you did, that made a difference in their lives. They also the miserable right down on water what you have done so working Gorman you ve spent time was not about high profile ceos in companies that we work with any story that you're a comfortable sharing any any clients that really stood out. Daddy about run in the last five or ten years in technologies and fast Eddie, because the place we You pie in the world a mistake. We happen to sit in the jobs that have let you interact amazing people that we let this investment in Facebook back in two thousand ten before they got up what has really source by your another as well as living in London. I remember being in Moscow cutting a deal with you worry about our video Gary in New York,
a fair weather. We do the same aeroplane was say he distribute the rest. Georgie was in the West Coast, doing the due diligence and that fascinating inside right. At the beginning of a chat room tat, you often the value creation, medicine, Spain has for years been the abroad where rapidly on mostly try to take his company private fortune. but I shall try trying to figure that out, which include the They immediately launch out from the chamber at night till till the morning, we'll just fascinating no we're in the middle of a overboard, roman Goober was trying to oust Travis Comic, a bridge to negotiate that and spend time the boy room: Tuna, defending Jack Dorsey one because it I'll try to throw a lot of jobs. I sort of the unbelievably fascinating characters that you get the chance to meet me a true entrepreneurs, innovators and business pillars. Nobody will leave up mark on the world yet age that its economy, that we get the opportunity not only be a spectator
What's goin on be right there, the advisers they try to guide to these billion should wants districts and as long as stated in the parlour, if you could think back your one thousand nine hundred and ninety two self. What kind of advice would you give an investment banking analyst that just started out today in the business I would say to find out what you like about the job offers will find that you like the job and some people get the job, because I think they can make money or the English most like it fundamental? Do you like the job, because you were way too hard as little as do not like the job, and you can't be good something you don't like so familiar the job and then find out what you ve got out and pursued, and whether that being an industry banker, Emily banker for finance, the banker blending again, you can be really good at this job. If you like what you're doing better and better and better interesting things come along. I almost under private, reform after two years allows an alarm away. There is always an extra jobs, get them start a golden Saxony and wanting to leave organs after someone time, the job offers only get better and better and better and a longer you stay here but better.
Oh baby, vigilant, Wharton, was merely interested smart table for a long time. and then embrace the challenge along away. Madame a whole bunch of situations where I moved gene fees or industries or otherwise, and you're a little, but out of my country, Germany, would have an equal say in my car job and has caused Think it was a lot more challenging along the way, but it My career lost a lot of those incentives acting for twenty years over the last twenty eight years. I think, having moved around a bunch of places and being forced to really work alone and harder and learn a lot more, maybe better at the job and made the job much one shouldn't worry me: thanks so much for joining us today, and thanks for leaving your brother behind in in the business in the hands of awe dandies and Germ Esposito, ethical, be ok, but good! Luck to you in the next chapter Dan general dread to german performance. That concludes this item. Exchanges: Goldman Sachs thanks for listening! If you enjoyed the show, we hope you subscribe an apple Pakistan liberating or a comment,
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Transcript generated on 2021-07-01.