Burnout bonuses – Who to know to launch a hedge fund – Wall Street confessions

Hello, readers.

Happy Saturday, and welcome to Insider Finance. Here’s a rundown of the must-know stories from the past week:

  • Some Wall Street firms are bumping salaries and giving special bonuses to keep young talent happy
  • Former Goldman partner Sumit Rajpal is out raising money for a new fund to invest in banks and fintech
  • 29 people to know when launching a hedge fund
  • H&R Block CEO Jeff Jones has big fintech ambitions

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Wall Street is showering junior staff with special bonuses and perks as burnout mounts

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As complaints grow louder about work conditions across Wall Street, some firms are starting to respond with special bonuses and raises.

Read more:

  • 5 current and former analysts from firms like Goldman Sachs and Credit Suisse explain their daily schedules
  • Credit Suisse is paying analysts, associates, and VPs special $20,000 bonuses and raising salaries for all but the most senior bankers
  • Apollo is offering some associates retention bonuses of up to $200,000 to stay on until 2022

READY TO LAUNCH: 29 bankers, advisors, and lawyers to know if you’re thinking about starting your own hedge fund

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For those looking to hang their own shingle, Insider talked to more than a dozen industry insiders and compiled a list of bankers, advisors, consultants, and lawyers who are known for their ability to get a new manager up and running. You can see the full list here.


The former co-head of one of Goldman Sachs’ most elite investing groups is making his own bets on banks and fintechs

Former Goldman Sachs partner Sumit Rajpal is starting his own investment firm. He’s already identified a few investments and is raising money for the transactions. Rajpal has also poached people to join him from Goldman, angering some of his former colleagues. Read everything we know here.


H&R Block’s CEO wants to expand beyond the company’s tax-prep roots and take on fintechs

Jeff Jones took the helm of H&R Block in 2017 on a mission to jumpstart growth at the tax-prep giant. Part of his strategy includes expanding in financial services. Here’s how the former president of Uber plans to do it.


Other Wall Street stories readers loved this week

  • The boom in sustainable investing has reached the junk-bond market
  • Revolut just officially filed for a bank charter and rolled out business accounts in the US
  • Jonathan Soros’ family office is spinning out a quant fund from portfolio manager John Holloway
  • Inside JPMorgan’s $30 billion push for racial equity in the economy – and within its own walls
  • Wells Fargo’s head of small business details lessons learned from the PPP rollout and the bank’s digital-first approach to SMB lending going forward
  • Goldman Sachs just vowed to improve conditions for junior bankers. But a newly leaked pitch deck shows analysts were pleading for changes since WFH started.
Read the original article on Business Insider

David Solomon wants more face time – Cuts are back at BoA -BlackRock teams up with Snowflake

Hello, readers!

Happy Saturday, and welcome to Insider Finance. Here’s a rundown of the must-know stories from the past week:

If this email was forwarded to you, sign up here to get your daily dose of the stories dominating banking, business, and big deals.


David Solomon goldman sachs
Goldman Sachs CEO David Solomon speaks at the 2019 Milken Institute Global Conference

Goldman CEO wants this summer’s interns in the office and says remote work has had an ‘enormous impact’ on how the bank operates

One of Wall Street’s most influential CEOs has dumped a bucket of cold water on the idea of long-term remote work and a second year of virtual summer internships, as uncertainty looms about the threat created by the coronavirus pandemic.

“This is not a new normal,” Goldman Sachs CEO David Solomon said this week, adding that the nature of remote work was in conflict with his firm’s “innovative, collaborative, apprenticeship culture.”

“I don’t want another class of young people arriving at Goldman Sachs in the summer remotely,” he said.  

Read more about Goldman’s remote work outlook, and what it means for young Wall Street.


Bank of America is firing people in its investment bank again

Amid the uncertainty and chaos in the early days of the pandemic, Bank of America committed to avoiding layoffs for the year. For staff in trading and investment banking, that provided a reprieve from the annual culling of underperformers that’s common across Wall Street. 

But now the reprieve is over. While some employees are already being handed pink slips, other senior staffers have voluntarily raised their hands to take an exit package, sources told Insider.

Get the full rundown here. 


A new stock-trading venue backed by a who’s who of Wall Street is pitching a perfect solution

A new trading venue that aims to make it easier for large investors like mutual funds and hedge funds to trade blocks of stock is preparing to go live following a fundraise from some of Wall Street’s biggest names.

PureStream Trading Technologies, started in 2018, is preparing for a launch sometime in the second quarter of this year. It’s raised $14 million from a who’s who of Wall Street investment banks and buy-side firms including Goldman Sachs, Bank of America, AllianceBernstein, and BMO Capital Markets, which bought algo platform Clearpool last year. 

Now they just need to get everyone on board.


BlackRock is teaming up with Snowflake

BlackRock is partnering with a red-hot tech company as a way of adapting one of its crown jewels to meet a customer base increasingly focused on data and coding. 

The world’s largest asset manager is launching a feature called Aladdin Data Cloud with the help of Snowflake, the cloud-data storage firm that went public last fall.  

The new feature allows customers to access and combine Aladdin’s data with their own internal or third-party data sets. It’ll also serve as a big boost for Aladdin Studio, a set of tools for developers to open up and customize Aladdin for their needs. The decision to open up Aladdin for more customization was a long time coming, Sudhir Nair, global head of the Aladdin business at BlackRock, told Insider. 

Read more about the new partnership here


Wall Street people moves of the week

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    • TIAA named Thasunda Brown Duckett as its next president and CEO. She will join the firm on May 1 from her current employer, JPMorgan Chase, where she has served as CEO of Chase Consumer Banking. At TIAA, Duckett will succeed Roger Ferguson, who is departing the firm after 13 years as chief executive. JPMorgan co-president and COO Gordon Smith said in an internal memo that, in the meantime, leadership of the consumer bank will report in to him and that the firm will announce plans around succession shortly. 
    • Maverick Capital executive Andrew Warford is leaving the $9 billion hedge fund. Warford, chairman of the firm’s stock committee and de facto head of the fund, is departing after 18 years. He was tapped to head up the stock committee in 2012 and became a managing partner in 2013 as Lee Ainslie, Maverick’s billionaire founder, gradually stepped back and delegated more power. Sources tell Insider that Warford will run his family office from Minnesota.

Here’s our full rundown of moves at firms like Goldman Sachs, Credit Suisse, and HSBC


Other stories our readers loved this week:

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Alexis Ohanian’s new Seven Seven Six fund just picked the first 3 members of its program to train new VC investors

Alexis Ohanian
Alexis Ohanian.

  • Alexis Ohanian’s Seven Seven Six fund announced three new operators in residence.
  • The fund received over 1,100 applications in a week and only accepted three operators.
  • Back in September, Seven Seven Six targeted a $150 million fundraising.
  • Visit the Business section of Insider for more stories.

After three months and 1,100 applications, venture fund Seven Seven Six has named the first three participants in its “operators in residence” program, the fund’s bid to help tech professionals from a variety of backgrounds make the move into a career in venture capital investing.

Last Friday, the fund announced the three chosen “operating partners,” and reiterated the program’s mission: “If we can attract and train talented operators from a wide variety of backgrounds for an annual evergreen program, we can then provide unparalleled support to our portfolio companies year over year AND bring much needed access and opportunity for all to venture capital.”

The three operators joining the inaugural class are Hiram Vazquez, Travis Mason, and Cristina Georgoulakis, who will spend the next year earning $140,000 a year to build their respective investor skills and strategies while offering their operational experience to Seven Seven Six’s portfolio companies.

Vazquez is joining Seven Seven Six after stints as an entrepreneur and product manager in growth-stage startups such as Uber. Vazquez’s inspiration comes from the tech industry using their platform to give back outside of the industry.

Mason comes from working at companies such as Google and Airbus and is interested in emerging technologies worldwide. “Not every startup has to weigh the challenges of policy and regulation on day one,” Mason said in the announcement. “But in a world where governments are increasingly regulating innovation, large and small, a mastery of rule making can be a startups (and investors) secret weapon.”

Georgoulakis, a “dot-connector & systems-thinking leader,” joins Seven Seven Six with a CX and design background while also holding leadership roles in hyper-growth startups. “I am a Customer Experience leader who values driving growth in people and organizations,” Georgoulakis said in the announcement. “I’m interested in joining a for-profit mission-driven company where I can drive growth in people and organizations.”

The three operators started at the fund in late January and have already been working with the fund’s portfolio companies.

Alexis Ohanian, former cofounder of Reddit and venture firm Initialized Capital, announced plans last September to raise the Seven Seven Six fund, with a target of raising $150 million.

 

Read the original article on Business Insider