Goldman Sachs executives are annoyed after the company’s CEO moved their offices closer to regular employees

David Solomon
  • Goldman Sachs CEO David Solomon moved executives’ offices closer to everyday employees.
  • The move irked executives, who had to give up cushier office spaces with views of the Hudson River.
  • Employees say the company’s top brass are still as distant as ever.

Goldman Sachs executives are annoyed after CEO David Solomon relocated them from cushy offices with views of the Hudson River on the 41st floor into cubicles on the 12th floor closer to the company’s rank-and-file employees, the New York Post reported.

In an internal memo, Solomon said he wanted executives to be closer to the “Sky Lobby,” which is a center of collaboration at the company with couches, a cafeteria, and a gym.

“The Sky Lobby was specifically designed to be the hub of this office,” Solomon wrote in the memo, the Post reported. “There is a natural ‘buzz’ there, and I want our leadership team to be part of it.”

However, sources told the Post that company executives are still distanced from everyday employees by a spiral staircase, and that the executives typically work from the executives’ individual conference rooms. An anonymous source also told the Post that there wasn’t enthusiastic support for the move.

The company did not immediately respond to Insider’s request for comment.

Though the move was announced in December 2019, it wasn’t implemented until this summer due to pandemic-related lockdowns.

Many Goldman Sachs employees aren’t back to working in the company’s offices full-time, with many preferring a hybrid arrangement where they filter in and out of the office throughout a week. Some junior bankers have also resisted returning to company offices after spending much of the pandemic in their homes around the country.

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Here’s how much home prices will rise in 2022, Goldman says

house for sale
It’s hard out there for home shoppers.

  • Home prices could surge another 16% in 2022 as the supply-demand mismatch continues, Goldman Sachs said.
  • Prices have already shot up 20% this year as the housing shortage fueled bidding wars across the US.
  • This could bleed into rentals, with shelter inflation soaring to 4.5% from 2.4%, the economists added.

Goldman Sachs has some mixed news for US homebuyers who have struggled with a white-hot housing market all year.

The good news: Prices won’t surge as much next year as they have in 2021. The bad news: They’re still going to go up a lot.

Prices for US homes will climb another 16% through 2022, Goldman economists led by Jan Hatzius said in a Monday note. The forecast gives prospective buyers little to cheer as the new year looms. Prices have already surged 20% through the past year, as a dire home shortage has given way to frenzied bidding wars. Builders have moderately accelerated construction of new houses, but they’re far from hitting the pace needed to match demand.

The shortage will linger into next year, and it’s uncertain whether the market will normalize then, the team said.

“Of all the shortages afflicting the US economy, the housing shortage might last the longest,” they said. “While the supply of homes for sale has increased modestly since the spring, it remains well below pre-pandemic levels and the outlook offers no quick fixes for the shortage.”

The mismatch between buyer demand and nationwide supply is the basis for the bank’s expectation that prices will boom well into the 2020s.

On the supply side, builders can’t ramp up construction even if they wanted to. Firms don’t just face pandemic headwinds like supply shortages and delays, but pre-crisis problems like a lack of workers and land scarcity as well, the economists said.

Those obstacles will limit new home construction to roughly 1.65 million units per year, or a net increase of 1.4 million per year after demolitions, they added. That’s only just above the pace seen in August, but well below the annual rate of 2 million homes the National Association of Realtors says is needed to fill the deficit caused by years of underbuilding.

On the other side of the equation, demand shows no signs of letting up. Millennials are in their peak buying age and they’re set to power a once-in-a-lifetime boost to household formation. And while Americans’ attitudes toward buying a home are at the lowest point since the 1980s, there are still plenty of “reluctant bulls” on the sidelines, the team said. These buyers plan to buy homes in the near future, even through their sentiments toward the market have soured.

With the market rife with reluctant bulls and struggling homebuilders, prices won’t cool off for years, Goldman said.

Renters aren’t safe, either. It just won’t be as bad.

Much of the housing turmoil has already bled into the rental market. Prices have surged above their pre-pandemic highs in many cities, and in places where deals can still be had, they’re expected to fade in a matter of months.

The bank expects that price surge to continue through 2022. Goldman sees shelter inflation rising to a year-over-year rate of 4.5% by the end of next year, a sharp acceleration from the current 2.4% pace and the fastest price growth in 20 years.

The forecast is concerning, especially since inflation already sits at decade-highs. The bank’s shelter inflation tracker – which lumps a collection of alternative rent measures into a single forecast – has leaped from 2.1% to 4.6% in just six months.

There’s reason to believe the actual increase won’t be as steep as that measure suggests, the economists said. For example, some of the measures track private rent indexes, and those focus more on rents that turn over to new tenants instead of continuing leases. Landlords tend to raise rents more for new tenants than existing ones, and less than 5% of rentals turn over in a given month, Goldman said.

Separately, a wide range of cities and states also enacted rent freezes during the pandemic, and governments will likely regulate how fast rents can climb during reopening.

Housin is in the process of cooling off from its wild pace earlier this year. But those hoping for a quick return to the pre-crisis normal are set to be disappointed.

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Goldman Sachs has reached a settlement with a former intern who accused the investment banking firm of fostering a ‘fraternity culture’

goldman sachs
  • Goldman Sachs and a former intern have settled, according to court filings from Thursday.
  • The intern accused the company of fostering a culture that promotes hazing and violence.
  • He says he suffered bleeding to the brain after an adviser punched him and headlocked him.

Goldman Sachs has reached a settlement with a former intern who accused the investment firm of fostering a “fraternity culture” that promoted hazing and violence.

Patrick Blumenthal was a Drexel University student who interned for Goldman Sachs in San Francisco beginning in September 2017.

Court filings say Blumenthal was assigned to work with a group that called itself “Team 007” and was led by wealth adviser Julius Erukhimov.

A complaint alleges that the bank “fostered a fraternity culture” complete with derogatory name-calling, physical altercations, and “rampant” drinking. It says Blumenthal was pressured to drink within his first week at Goldman despite being underage and was repeatedly warned early on that he would “take an infinite amount of shit from people.” The filing says Erukhimov called the plaintiff a “pussy” for not drinking enough and even told Blumenthal to take Adderall so he could drink more.

The settlement, filed Thursday in the San Francisco Superior Court, does not reveal the specific terms of the agreement.

Perhaps the most damning incident in the lawsuit says Blumenthal was “forced to drink by his managers” during a “First Friday” bar event. The filing accuses Erukhimov of telling Blumenthal that he would “teach him how to drink” before punching him in his stomach and telling him to punch his manager back.

When Blumenthal said no, the complaint filing says, Erukhimov wrestled with him and shoved him from the bar to the outdoor patio. The adviser then allegedly choked Blumenthal for so long that he passed out and urinated on himself. Blumenthal came away from the incident with an injured head, the filing says.

He went to the emergency room days later, according to the complaint, where doctors told him he had bleeding to the brain.

Multiple Goldman employees witnessed the event, Blumenthal’s lawyers say in the complaint filing. And they let Erukhimov drive Blumenthal to Erukhimov’s home, where he took four pain relievers. At the adviser’s apartment, Erukhimov allegedly threatened him, saying a relative would kill him if Blumenthal disclosed the events of the night to management.

Goldman Sachs did not immediately respond to a request for comment asking for the details of the settlement.

Insider’s Ben Winck contributed to this report.

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US stocks trade mixed as investors struggle to recoup losses from tech-led rout

Traders work on the floor of the New York Stock Exchange September 4, 2008 in New York City.

US stocks were mixed on Wednesday after a massive tech sell-off in the previous session drove the stock market to its biggest decline in months.

The benchmark S&P 500 gained after closing lower by 2% in its worst one-day performance since May during the previous session. The Dow Jones Industrial Average was higher, but the Nasdaq slipped at the end of the day to end in the red.

Here’s where US indexes stood at the 4:00 p.m. ET close on Wednesday:

The 10-year US Treasury yield shed around 0.8 basis points, slipping to 1.544% after rising to an intraday high of 1.567% Tuesday – its highest since the end of June – on fears of rising inflation and uncertainty around Congress’ ability to raise the debt ceiling before the Treasury runs out of money on October 18.

“Investors just want to fast forward past the debt ceiling drama and focus on the global economic recovery,” Edward Moya, senior market analyst at foreign exchange firm Oanda, said in a note. “The global reopening trade was delayed due to delta, but that should firmly be the theme as supply chain issues improve.”

High-growth tech shares are sensitive to yields, and rise in global bond yields makes returns on stocks look less attractive.

Still, investors should still hold onto their high-growth tech stocks for the long-term, Goldman Sachs said in a recent note. Even if the 10-Year US Treasury yield hit a three-month peak, interest rates are still historically low, the bank added, an environment that should support valuations for high-quality, high-growth stocks.

Famed economist Mohamed El-Erian reiterated in a recent opinion piece that the sharp rise in Treasury yields should urge the Federal Reserve to rethink its taper timeline. He warned that the increasingly volatile Treasury markets could spill over into other financial sectors, threatening the real economy.

Warby Parker soared as much as 36% in its direct listing debut, handing the eyewear retailer a valuation of more than $6 billion. The firm’s direct listing price came in at $54.70 per share on Wednesday, well above its reference price of $40 per share.

Lucid jumped 15% after the company said it has started producing its flagship electric sedan and will start delivering vehicles to customers late next month.

In cryptocurrencies, bitcoin slightly slipped by 0.71% to $41,261.45, extending its two-day loss.

In El Salvador, President Nayib Bukele said the Central American country has taken the first steps towards getting its bitcoin volcano project underway, part of a plan to mine cryptocurrencies with renewable power.

In Thailand, the country’s tourism body is reportedly considering launching a digital token to tap into the growing interest in the tourism world for cryptocurrencies. The coin will involve transferring vouchers into digital tokens.

Oil prices scaled back after soaring above $80 for the first time in three years as a shortage in natural gas spurs demand.

West Texas Intermediate crude oil slipped 0.56% to $74.57 per barrel. Brent crude, oil’s international benchmark, fell 0.57% to $78.64 per barrel.

Gold fell 0.61%, to $1,724.88 per ounce.

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Goldman Sachs cuts its China GDP forecast for 2021, warning the economy’s energy crunch is yet another growth shock

A worker works on an assembly line at an automobile manufacturing factory in Qingzhou, East China's Shandong Province, Sept. 28, 2021
  • Goldman Sachs lowered its 2021 GDP growth forecast for China to 7.8% from 8.2%, blaming energy constraints.
  • Pressure to meet environmental targets has affected 44% of China’s industrial activity, its economists said.
  • Evergrande-related risks to the property sector and regulatory clampdowns are other headwinds to the economy.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Goldman Sachs has lowered its outlook for China’s economic growth in 2021, saying environment-focused curbs on energy consumption could pose “yet another growth shock” on top of the pandemic’s impact.

Economists at the Wall Street bank now forecast growth of 7.8% for the country’s gross domestic product year-on-year, down from the 8.2% expansion they previously expected.

“A relatively new, but tightening, constraint on growth comes from increased regulatory pressure to meet environmental targets for energy consumption and energy intensity,” the economists wrote in a report released Tuesday.

China aims to reach carbon neutrality before 2060, and to have carbon emissions hit their peak and decline before 2030. Increased pressure on Chinese provinces to meet these targets has led to curbs on usage, including scheduled power cuts, that have driven down factory production.

Suppliers to Apple and Tesla are among those affected, according to Reuters. Goldman estimates that 44% of China’s industrial activity has been hit by the cutbacks.

The economy was already grappling with the impact of restrictions brought in to quell outbreaks of the Delta coronavirus variant, the Goldman team noted, as well as regulatory clampdowns across several key industries.

“The peculiar nature of the COVID shock has made the economy more energy-intensive, at least temporarily,” they said, noting that an export boom has boosted demand for power from manufacturing industries.

“Meanwhile, efforts to reduce coal-fired related emissions and a reduction in coal imports have affected supply levels at least on the margin, contributing to a sharp increase in price,” the Goldman team said.

Evergrande’s debt crisis and related risks to the broader Chinese property sector are weighing on property sales and construction, adding to growth constraints, they noted.

Goldman’s team expects China’s economy to grow 4.8% in the third quarter and 3.2% in the fourth quarter compared with a year earlier, down from prior forecasts of 5.1% and 4.1%, respectively. China said its GDP grew 7.9% year-on-year in the April-to-June quarter this year.

Nomura and Fitch have also cut their forecasts for China’s overall GDP growth this year.

Read More: Investing pioneer Rob Arnott says value stocks could give investors returns of 10% a year over the next decade. Here’s why he thinks there may never be a better opportunity to buy them than the one available now.

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The Evergrande crisis and Beijing’s tech crackdown have rattled investor confidence in China, but 2 experts say they’re still bullish on the world’s 2nd-largest economy

A logo of Ant Group is seen at the company's headquarters on October 30, 2020 in Hangzhou, Zhejiang Province of China.
Ant Group headquarters, October 30, 2020 in Hangzhou.

  • The Evergrande crisis and Beijing’s ongoing tech crackdown have rattled investor confidence in China.
  • Yet, two experts said they’re still bullish on the country.
  • “I believe very strongly that Chinese tech will weather the current rough storms,” Fred Hu of Primavera Capital said.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

The Evergrande crisis that’s roiling global markets and Beijing’s ongoing tech-sector crackdown have rattled investor confidence in China. Yet two experts speaking on a podcast hosted by Goldman Sachs said they’re still bullish on the world’s second-largest economy.

Among the big questions is whether China is still investable, which Fred Hu, founder and CEO of Primavera Capital and former partner at Goldman Sachs, answered: yes.

“There are clearly some legitimate concerns in the short term because there’s a lack of communication, lack of clarity of the government … So, I do understand why some investors may be frightened,” he said on the podcast published Tuesday. “But I believe very strongly that Chinese tech will weather the current rough storms… I think it would be a mistake to ignore the opportunities in China tech.”

Hu said he understands the rationale of China in stepping up its regulatory policies against tech companies, given that the Asian nation has one of the world’s most robust and influential tech sectors.

“The tech sector has played a massively beneficial impact … throughout the pandemic,” he said. “Nevertheless, the ubiquity and the growing role of tech companies has clearly also caused a variety of concerns in China as elsewhere.”

He enumerated three of the most common concerns when it comes to China’s rapidly expanding tech industry: abuse of market power, data security, and consumer privacy.

The current wave of regulation affects the consumer internet sector the most, he said, which includes fintech, e-commerce, and education-tech. But semiconductors, industrial automation, robotics, cleantech, electric vehicles, and renewable energies, he said, have been largely spared from the crackdown.

“Tightening of regulations unties monopolies,” he said. “Those are going to happen regardless, in China and elsewhere. It doesn’t mean it’s the end of tech investment opportunities in that. Far from it.”

David Li, an economics professor at Tsinghua University, agreed, saying he would have concentrated his investments on the tech sector if he was 30 years younger. He also gave investors a word of advice.

“I wouldn’t try to make comments on areas like politics or international relations,” Li told the podcast. “I think this is a new era of China … Business is business. Politics is politics. Don’t mix them.”

China in August issued a five-year blueprint that indicated it won’t be loosening its grip on the tech sector anytime soon. Authorities said they would actively work on legislation for national security, tech innovation, monopolies, and education, signaling a continuation of the nation’s data privacy and antitrust issues.

This has led some, such as George Magnus, an associate at Oxford University’s China Center, to warn about the risks in investing in the Asian economy.

“China is not your run-of-the-mill investment universe for reasons that we’ve been talking about, which is intervention of politics in the extreme,” he said on the podcast. “I think it’s a much riskier and a much more dangerous market than what it was six months ago.”

Magnus highlighted the last-minute cancellation of the $37 billion IPO of Alibaba’s Ant Financial as well as the clampdown on ride-hailing giant Didi after its successful New York debut as examples.

Ant on Wednesday said it will integrate its data into a government credit-reporting system, according to its account on social media platform Weibo.

“There’s a big picture here which is really about the supremacy and the controlling influence of the president within the party,” Magnus said, referring to President Xi Jinping’s tight leash on the sector.

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Goldman Sachs announces the latest part of its $10 billion racial justice investment ⁠- this time supporting Black women in STEM

Asahi Pompey
Asahi Pompey shared a public letter to her 11-year-old son in a Goldman Sachs town hall that spurred the massive investment.

  • Goldman Sachs is rolling out a new initiative that’s part of its $10 billion investment in Black women.
  • The firm’s CEO David Solomon has tasked Black female execs with leading the investment.
  • The investment came after a virtual town hall in the wake of George Floyd’s death.
  • See more stories on Insider’s business page.

On Wednesday, Goldman Sachs announced it is rolling out the latest part of its $10 billion investment in Black women in the US.

The financial behemoth is partnering with Black-led financial services firm Loop Capital. Together, they’re providing clients of both firms with funds to invest in programs that support Black women pursuing STEM careers. Google is supporting the initiative with a $500 million investment.

“This launch creates a partnership for corporations to use the cash on their balance sheets to further opportunities for Black women and have a real, lasting impact on communities far and wide,” Kourtney Gibson, president of Loop Capital Markets, said in a press release.

Goldman’s $10 billion investment in Black women was born out of a raw, emotional conversation CEO David Solomon facilitated at the firm in June of 2020. A few days after the murder of George Floyd, Solomon called a company-wide virtual town hall meeting. He invited three Black executives at the firm to share their perspectives on the Black American experience.

Asahi Pompey, global head of corporate engagement and president of the Goldman Sachs Foundation, was one of those executives. During the town hall, she shared a public letter to her 11-year-old son where she expressed her worries for his life.

At the end of the town hall, Solomon said “I want us to do something as a firm.”

Shortly after, Solomon asked the firm’s research branch where Goldman Sachs could have the most impact to uplift Black Americans. The result: Solomon and a team of executives decided to invest $10 billion to impact at least one million Black women. The investment is aptly called “1 Million Black Women.”

The report that informed this decision had a clear takeaway. Investing in Black women would have a substantial impact on the economy. The research team estimated that confronting the earnings gap for Black women could raise the country’s GDP by 1.4% to 2.1% each year, or up to $450 billion.

“The town hall fundamentally changed the firm,” Gizelle George-Joseph, chief operating officer of global investment research at Goldman Sachs, told Insider. She and Pompey are spearheading the investment. George-Joseph, who oversaw the research behind the investment, is consulting with executives like Pompey to make sure the money is invested in places that will have the most impact. Specific plans for how the money will be deployed have not yet been announced, a Goldman representative said.

“We found that if we can equalize Black women’s positions because they are one of the most marginalized groups in this country, then it’s not just an investment in Black women, but it’s an economy that’s working for everybody,” George-Joseph said.

Putting Black women in charge

Gizelle George-Joseph
Gizelle George-Joseph said she’s proud to be co-leading the firm’s investment in 1 million Black women.

Several large companies and banks – including Apple and Citi – have committed billions to address racial inequity in the wake of Floyd’s death. Normally, those investments are overseen by the company’s top executives, who are typically white men. But this initiative is not normal.

At Goldman, Solomon has assembled a team of Black women to oversee the firm’s $10 billion investment. Incoming Walgreens CEO Roz Brewer, actress and director Issa Rae, and former Secretary of State Condoleezza Rice are all on the board of directors for the project. Pompey said Solomon’s decision gives the firm a strategic advantage.

“Those closest to the problem are also closest to the solution,” she said. “Very often other people assume and don’t ask Black women ‘What would make a difference in your communities?'”

Filling a need

The $10 billion investment addresses disparities Black women face in the job market, housing, healthcare and startup funding.

“We found some really startling numbers,” George-Joseph said.

Black women are a crucial part of America’s startup ecosystem, yet they are deeply underfunded. The number of businesses owned by Black women grew 50% from 2014 to 2019, according to American Express research. Despite this, Black female founders accounted for just 0.3% of venture capital funding, per Goldman Sachs.

Jeannine Cook, the owner of Harriett’s Bookshop in Philadelphia, heralded Goldman’s investment “powerful” and “necessary.”

Cook opened Harriett’s just weeks before the coronavirus pandemic triggered worldwide closures and restrictions. Now, her shop has over 50,000 Instagram followers and she’s been featured on “Good Morning America” and has been visited by several noteworthies, including Isabel Wilkerson, author of the acclaimed “Caste: The Origins of Our Discontents.”

“Black women have always led this country, it’s just that someone else’s name has been attached to our creativity and our content and our decisions. But we’ve always been doing this work,” she said. “I think it’s way past time that something like this happened.”

Black women earn 15% less than white women, and 35% less than white men, per Goldman’s report.

Those closest to the problem are also closest to the solution

To help close the wage gap, the firm recommends businesses hire more Black women in high-paid positions, achieve pay equity, and invest more in Black female founders, like Cook, who can create jobs.

According to the company’s 2019 sustainability report, 29% of its global managing director class were women, 4% were Black. The firm said it wants to increase representation in hiring for entry-level analysts and associates in the Americas to 50% for women, 11% for Black employees. Goldman did not include a timeline.

Editor’s note: This is an updated version of an article originally published on March 16, 2021.

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I’m a former Goldman Sachs analyst who raised over $8.5 million for my fashion startup. Here’s how I realized finance wasn’t for me.

Meg He ADAY credit: Bridget Badore
Meg He is the cofounder of fashion startup ADAY.

  • Meg He, 33, is the cofounder of ADAY, a fashion brand that creates sustainable professional workwear.
  • After leaving a career in finance and venture capitalism, He started ADAY with former Goldman Sachs coworker Nina Faulhaber.
  • This is what running her business is like, as told to freelance writer Claire Turrell.
  • See more stories on Insider’s business page.

I’ve always had an entrepreneurial spirit and liked to set myself a challenge. At 15, I started selling vintage designer clothing on eBay. When I was applying to college, I applied to Merton College at Oxford University for economics and management as I was told it was the hardest course to get on to in terms of acceptance rate. But I did it. After graduation in 2008, I was hired as an analyst at Goldman Sachs.

At Goldman, I met my future ADAY cofounder Nina Faulhaber. We both have strong work ethics and hit it off immediately. After two years working at Goldman Sachs, we both started working for different venture capitalist companies, and I later worked for Poshmark before taking time off to return to the UK in 2014. Nina and I always stayed in touch and bounced business ideas off each other, and my move back home became the trigger for starting ADAY.

Even while working at Goldman Sachs, I knew finance wasn’t the right industry for me.

When I looked around the room at my fellow analysts, I could tell they enjoyed the job more, were more motivated, and were better at it than I was. I had an inner ecommerce geek that needed to get out – I thrived on marrying insights with consumer psychology and behavior and I also loved the way fashion could make people feel empowered.

As businesswomen who loved to work out, Nina and I had the idea of launching a workwear collection that was as comfortable as gym wear. We spent 12 months travelling to fabric mills in Italy, visiting sustainable factories in Portugal and Los Angeles, and holding focus groups in the UK. In January 2015 we launched our sustainable fashion brand ADAY with a capsule collection of leggings, shorts, and tops, all made with recycled UV-protected fabrics.

While we had big plans, we started small. I had quit my job and then Nina quit hers. From networking and telling people about our plans, we raised about $200,000 to launch the brand.

Our first meetings were held in coffee shops, and we even took an investor conference call in a parking lot.

ADAY founders Meg He and Nina Faulhaber. Credit: Bridget Badore
ADAY founders Meg He and Nina Faulhaber.

We had just three full-time members of staff (Nina, myself, and a junior designer), and the former head of womenswear for Everlane as a consultant.

While we always had faith in what we were doing, it was comforting when we started to see our plans pay off. After a pair of our leggings sold out, we decided to launch more items like swimwear and to work on new fabrics, like moisture-wicking linen and fabric made from recycled water bottles.

Raising money to expand globally was a slow but steady journey.

In November 2017, we were able to raise $2 million in funding. Two years later, we raised another $8.5 million. This gave us the chance to expand to the US, and in the fall of 2019, we opened a 3,000 square foot office in New York, a store in San Francisco, and launched a travel-inspired collection.

But when the pandemic struck in March 2020, we had to go back to the drawing board. Our team of close to 30 people started working from home, we sublet our New York office, closed the store, and pushed back our product launches to 2021 and 2022. However, as more people were looking for comfy clothes to wear for working from home, our sales were still up, which thankfully gave us time to launch Made Again, where we rework over-ordered stock into new pieces.

My work schedule is always changing – I’m often most productive between 8 p.m. and 1 a.m.

I start each day by walking my dog around my neighborhood in New York. Then I have virtual meetings from 9 a.m. to 6 p.m. with investors, potential partners, and staff. I block out two hours each day for deep work, where I fixate on a goal for the business.

As I compete in Brazilian jiu-jitsu, I tend to keep my days flexible. I go to the BJJ academy five to six days a week and take strength and conditioning classes at the gym. At the moment I am training for the IBJJF World Master Championship in Las Vegas in November. My workouts change depending on how close I am to competing, so if I’m training for one to two hours in the afternoon, I’ll work more in the evening. I get a lot of my best work done between 8 p.m. and 1 a.m.

The key to being a successful entrepreneur is to be honest about what you’re good and bad at.

If it’s not your skillset, hire someone to do it and don’t waste time trying to do it yourself. It’s also important to have a supportive network of people around you who understand what you’re going through. And if you have an idea for a business, don’t tell it to everyone. It’s like announcing a baby name – everyone has a different opinion, and not everyone’s opinion should matter.

While investment banking wasn’t for me, it did teach me a lot. The meticulous attention to detail working at Goldman Sachs is something I’ve never seen anywhere else. That commitment to excellence is something I always think about. When Nina and I are faced with a challenge, we’ll put in the work to make it A+++ because that’s the training we were given.

When we thought about launching ADAY, we were just two women who knew nothing about fashion design. Our experience in finance and venture capitalism taught us to be audacious and embrace being a more antagonist start-up to improve the standards of the industry.

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Higher taxes, not a slowing economy, are the biggest risk to stocks going forward and will erode profit growth, Goldman says

NYSE Trader Blur
Traders on the floor react before the opening bell on the New York Stock Exchange on March 9, 2020 in New York.

Tax reform is the key risk to US stocks through the end of the year, not a slowing economy, according to Goldman Sachs.

As a number of firms – including Goldman Sachs – downgrade GDP growth forecasts for the rest of 2021, concerns about what the softer growth outlook means for stocks have come to the top of investor minds, noted a team of strategists led by David Kostin.

But the price action within the stock market for the last several months reflects the weakening environment, the strategists said. However, “the market appears to be only partially pricing an increased tax rate in 2022,” the note reads.

Goldman Sachs estimates that a scaled-down version of the tax plan proposed by President Biden will pass into law. If the government hikes the domestic statutory corporate tax rate to 25% and increase taxes on foreign income, that would reduce S&P 500 earnings by 5%, according to Kostin’s team.

On Monday, House Democrats proposed a plan to lift the top corporate tax rate to 26.5%, below Biden’s proposed 28% rate.

“As a result of incorporating tax reform into our model, our 2022 EPS forecast is 3% below the bottom-up consensus estimate of $220, which embeds an effective tax rate of 19%, compared with a realized effective rate of 18% since the 2017 tax cuts,” they added.

Goldman Sachs said stocks with stable earnings and strong balance sheets should continue to outperform in the uncertain economic and tax policy environment.

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Goldman Sachs plans a London IPO for its $5 billion Petershill assets as it cashes in on the private equity boom

A reception desk at London Stock Exchange on August 29, 2019 in London, England

Goldman Sachs plans to list the alternative assets of its Petershill Partners unit on the London Stock Exchange, in a move that could value the investments at more than $5 billion.

Petershill, which holds minority stakes in 19 alternative asset managers, will be a standalone company run by the Goldman Sachs Asset Management team and will have an independent board, the group said in a filing on Monday.

The sale of new shares for the investment firm, which manages assets worth $187 billion, is expected to raise $750 million, according to the filing. The initial public offering is likely to take place within the next month, Reuters reported, citing a source close to the deal.

The London IPO, which would offer new and existing shares, is aiming at a valuation for Petershill above $5 billion, according to multiple reports.

Founded in 2007, Petershill was the first among a series of investment vehicles to take stakes in private equity and other alternative investments. Its floatation would allow it to become the largest listed alternatives business in London, according to the Financial Times.

“Through Petershill Partners, investors would benefit from the expertise of Goldman Sachs as its operator both in terms of managing the existing portfolio and developing opportunities to make additional future investments in this rapidly growing industry,” Naguib Kheraj, non-executive chair of Petershill Partners, said in the filing.

The firm has delivered high growth recently, with distributable profits to partners doubling from $108 million in 2018 to $243 million in 2020, and reached $310 million for the 12 months ending 30 June 2021.

Petershill had a technology-focused dedication to providing growth capital in 2017, but after the pandemic it has begun to reposition to sectors including healthcare, environmental, social and governance (ESG), and balance sheet repair, according to the filing.

With the listing, Goldman seems to be tapping into the potential of private equity funds, which have soared in value over the past year as investors looked for higher returns at a time of historically low interest rates.

Petershill said its business takes advantage of the association with Goldman Sachs track record and management team, which aid its ability to source acquisitions in alternative asset management.

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Update: This article has been updated to clarify that the Petershill Partners portfolio of alternative assets will list on the London Stock Exchange, not the unit itself.

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