Read the full memo naming the new co-heads of Goldman Sach's powerhouse tech team as top dealmaker Nick Giovanni exits

Read the full memo naming the new co-heads of Goldman Sach's powerhouse tech team as top dealmaker Nick Giovanni exits

January 7, 2021
  • Goldman Sachs investment bankers Sam Britton and Matt Gibson were named the new co-heads of the firm's industry-leading global technology, media, and telecommunications (TMT) advisory group, effective immediately.
  • The news was announced by Dan Dees and Jim Esposito, co-heads of the investment-banking division at Goldman Sachs, in a memo viewed by Insider.
  • Nick Giovanni, the outgoing head of Goldman's TMT group, is headed to Instacart, where he will be the home delivery service's new chief financial officer, CNBC first reported.
  • Visit Business Insider's homepage for more stories.

One of the highest profile investment-banking groups on Wall Street is undergoing a leadership shakeup.

Veteran Goldman Sachs bankers Sam Britton and Matt Gibson have been named the new global co-heads of the firm's industry-leading technology, media, and telecommunications (TMT) advisory group, effective immediately.

Britton is taking on leadership of the entire TMT franchise after having served as co-head of mergers and acquisitions for the TMT group. Gibson was previously co-head of investment-banking services and co-head of the firm's One Goldman Sachs initiative. Both are partners of the firm.

The news was announced by Goldman's co-heads of its investment banking division Dan Dees and Jim Esposito in a memo that was viewed by Insider.

Read more: Goldman Sachs' Sam Britton expects more 'dream deals' like Salesforce-Slack in 2021, and reveals the next hot M&A ideas

The TMT group handles deals for tech clients the likes of eBay, HP, Netflix, IBM, Slack, and PayPal, among others. In 2020, it worked on both mergers and IPOs including the largest software IPO of the year — Snowflake — and the largest acquisition of the year — client S&P's $44 billion all-stock purchase of data firm IHS Markit.

Within the TMT group, the leadership torch is being passed to Britton and Gibson from outgoing head of TMT Nick Giovanni. Giovanni will take on a new role as chief financial officer at home delivery service Instacart starting on January 27, CNBC first reported on Thursday.

Giovanni's last day at the firm will be Friday, Insider has learned.

Goldman's TMT group advises a who's-who of top tech clients

In a year of economic headwinds, the TMT sector was buoyed by a demand for software and technology deals, and Goldman's TMT group led the league tables.

For Britton, the year saw a spate of activity that lifted TMT to new heights. The group advised on roughly $275 billion in announced deal volume, according to data service Dealogic, outpacing all of its competitors.

The closest competition came from Morgan Stanley ($270 billion), and Bank of America (nearly $264 billion), according to Dealogic.

Prior to the announcement of his new role, Britton spoke to Insider in December about his reflections on the year 2020 and his forecast for the upcoming year. He credited Goldman's TMT franchise for its longstanding relationship with clients — one reason why they keep coming back.

"This is a business where experience begets more activity, and there's a virtuous cycle there," he said in the interview, adding that 2020 was "on fire" for tech M&A.

He predicted that "dream deals" along the lines of Salesforce's $27 billion stock-and-cash acquisition of Slack, Goldman's client, would be on the horizon in 2021.

But, as co-head of TMT, Britton and Gibson will be responsible for more than just mergers and acquisitions. They'll also preside over the group's equity capital markets advisory, which helps top-shelf tech companies go public.

TMT public offerings were also red-hot at Goldman in 2020

On the IPO side, Goldman advised on clients like Snowflake, DoorDash, and AirBnb, all of which raised north of $3 billion from their public market debuts.

Stars in the group include bankers like Jane Dunlevie and Will Connolly, both of whom made partner in Goldman's 2020 partner class announcement. Of the 19 investment bankers who made partner in the class — roughly a third of the bank's overall 60 new elevations to that elite designation — seven were from the TMT group. The number of TMT promotions is a signal that the bank sees the tech sector as likely to continue producing disproportionate returns in the years to come.

Read more: 2 of Goldman Sachs' top tech bankers explain how Biden could impact the listings frenzy and why the IPO roadshow will never be the same

Insider recently spoke to Dunlevie and Connolly about the rollercoaster year in tech IPOs. Dunlevie addressed what has lifted the sector to new heights in the past year, when so many others struggled to navigate a choppy economy roiled by the coronavirus pandemic.

"I think more and more businesses are going to market through tech," Dunlevie said in an interview in December, "and more and more traditionally tech investors are picking winners in categories that maybe haven't historically been driven by tech."

If market activity is any clue as to what awaits Britton and Gibson as they step into their new roles, there's no expectation that TMT will do anything but continue to grow.

Indeed, in a year when M&A deal volumes fell overall by 5%, TMT dealmaking in the US swelled to almost $387 billion 2020, according to data service Refinitiv. That's a 77% year-over-year increase as compared to 2019.

Read the full memo that Dan Dees and Jim Esposito, co-heads of Goldman's investment-banking division, sent about the TMT promotions

Sam Britton and Matt Gibson to Become Co-Heads of the Global Technology, Media and Telecom Group

We are pleased to announce that Sam Britton and Matt Gibson will become co-heads of the Global Technology, Media, and Telecom (TMT) Group. Together with a global team of experienced partners, Sam and Matt will work to refine and enhance TMT's global strategy with a focus on increasing our leadership position, strengthening client relationships, identifying commercial opportunities for growth and innovation, and developing our global team.

Sam and Matt have been with the firm for 24 and 20 years, respectively, and bring deep knowledge and invaluable expertise to their new roles. These appointments underscore our continued focus and commitment to this important client franchise.

Sam most recently was co-head of Mergers and Acquisitions for TMT. He joined the firm in 1997 and has worked in TMT based in San Francisco, serving as a trusted advisor on our most important M&A transactions across sub-sectors. Sam was named managing director in 2005 and partner in 2008. In connection with his new role, Sam will join the IBD Executive Committee.

Matt most recently was co-head of Investment Banking Services (client coverage) globally from 2015 to 2020, and is one of our most senior coverage bankers with deal experience across a broad range of industries. Matt is also co-head of the firm's One Goldman Sachs initiative. He serves as a member of the IBD Executive Committee. Matt joined the firm in 2001 and was named managing director in 2008 and partner in 2010.

Please join us in congratulating Sam and Matt, and in wishing them continued success.

Dan Dees
Jim Esposito

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