NEW YORK, Sept 26 (Reuters) - Goldman Sachs Group Inc (GS.N) is making its chief administrative officer, Edward Forst, the co-head of its investment management division, according to an internal memo, bolstering a division beset by struggles at some high-profile hedge funds.
Forst, 46, will run the division along with Peter Kraus. Forst fills a vacancy created three months ago when Eric Schwartz stepped down as co-head of investment management.
“Ed, together with Peter Kraus, will lead our efforts to grow our combined asset management and private wealth platform, which already is one of the largest in the world,” said the memo from Chief Executive Lloyd Blankfein and the co-presidents, Jon Winkelried and Gary Cohn.
Goldman spokeswoman Andrea Raphael confirmed the memo, but declined to make further comment.
Forst made headlines in February when he was transferred to London, making him the highest-ranking Wall Street executive to be posted overseas. Goldman said Forst will remain in London.
Investment management has become increasingly important for Goldman, which last week reported 27 percent growth in managed assets to $796 billion. But it has also been the source of some bad news this year.
The flagship Global Alpha hedge fund has plunged about 40 percent in value, and Goldman and investors infused $3 billion of new cash to bolster a Global Equity Opportunities fund hammered by market volatility this summer. Goldman executives said they expect more than $1 billion in further Global Alpha redemptions.
The division’s revenue fell 1 percent in the first nine months of the fiscal year, versus the year-earlier period.
Forst previously was chief of staff in the equities and fixed-income divisions and a co-head of global credit markets. Since 2004, Forst has been co-head of operations, technology, finance and services with Finance Chief David Viniar.
Forst joined the firm in 1994 in capital markets, was promoted to managing director in 1996 and made a partner in 1998, the memo said.