Goldman Sachs’ strategic decision to relocate Dirk Lievens, a veteran leader in its European investment banking division, from London to Paris signifies a pivotal shift in its regional operations post-Brexit. Lievens, who boasts a tenure of around 25 years with Goldman, has taken on the role of leading the financial institutions group for Europe, the Middle East, and Africa from the French capital. This relocation underscores the bank’s commitment to better serving its continental European clients, particularly banks and insurers, by placing key personnel closer to them.
Lievens’ move aligns with a broader trend observed across the financial industry, where major players like JPMorgan and Bank of America are reshuffling their operations away from London to other European financial hubs. Paris, with its strategic location and favorable regulatory environment, has emerged as a preferred destination for such relocations.
In addition to Lievens, several other members of Goldman’s financial institutions group have reportedly made the move to Paris. However, the bank has retained a smaller team in London to manage relationships with UK and Middle Eastern banks, acknowledging the continued significance of the UK financial market despite Brexit.
Beyond Paris, Goldman has implemented similar relocation strategies in other European cities. For instance, investment bankers focusing on natural resources firms have been relocated to Milan, while those dealing with car businesses now operate from Frankfurt. Furthermore, the bank has expanded its footprint in Munich by establishing an office dedicated to serving European technology, media, and telecoms firms.
However, these organizational changes come against a backdrop of internal turbulence within Goldman’s European division. The recent departure of the co-head of European investment banking, following a more than two-decade tenure, highlights some of the challenges the bank faces in maintaining stability amidst industry shifts and regulatory changes post-Brexit.
Nevertheless, Goldman’s investment banking division has demonstrated resilience in the face of challenges. Despite a decline in M&A volumes over the past two years due to factors like higher interest rates and geopolitical uncertainty, the bank reported a remarkable 28% increase in profit for the first quarter of 2023. This resurgence in dealmaking activity underscores Goldman’s enduring prominence in the global financial landscape and its ability to adapt to evolving market conditions.
