LONDON, Nov 3 (IFR) - Goldman Sachs has hired Tom Leake to run EMEA equity structuring, based in London. Leake joins from Deutsche Bank where he was global head of the equity structuring group.
Leake will start his new role in January and report to Guy Saidenberg, global head of structuring, a spokesperson at the US bank said.
During his seven years at Deutsche Bank, Leake helped to cement the German dealer’s position in risk premia investing, which sees investors extract alternative sources of beta in a systematic and liquid format. Many competitors have tried to replicate Deutsche’s success in that area as investors look to generate yield against a backdrop of low and negative rates.
Leake worked on more than 30 risk premia transactions, including a range of bespoke and off-the-shelf solutions. Those deals included the landmark portfolio overhauls for PKA, the US$35bn Danish pension fund, and the US$33bn Second Swedish National Pension Fund. Since then, the bank’s strategy has expanded from its alternative equity roots to a full multi-asset service.
The business has proven to be a bright spot for the German dealer, which manages 11bn of assets across nine risk premia portfolios, according to a recent presentation. That has come at a time when equity trading businesses taken a hit across Wall Street, with Deutsche Bank posting a 20% decline in its equity trading revenues compared with the same period a year earlier.
The equities business remains a priority for Deutsche Bank as part of “Strategy 2020” and it continues to invest in the unit. Following Leake’s departure Sean Flanagan, European head of the equity structuring group, is understood to have taken on his risk premia responsibilities.
Deutsche Bank declined to comment. (Reporting by Helen Bartholomew)