March 21 (Bloomberg) -- Goldman Sachs Group Inc. named Sonjoy Chatterjee to the new post of India chairman to lead the U.S. firm’s expansion of banking and asset management operations in the world’s second-fastest growing major economy.
L. Brooks Entwistle, who has been chief executive officer in the South Asian nation since January 2006, is moving to Singapore to become chairman and head of investment banking for Southeast Asia, according to two March 18 internal memos obtained by Bloomberg. Chatterjee had been hired in April from ICICI Bank Ltd. as managing director and co-chief for India.
Entwistle, 43, moved to India as the New York-based firm dismantled its joint venture with billionaire Uday Kotak in 2006 to set up its own investment banking unit. He oversaw its bid last week to buy India’s largest provider of index-tracking funds, the application for a commercial banking license and the almost fourfold expansion of a back-office unit in Bangalore.
The purchase of Benchmark Asset Management Co., which is to be completed this year, will give Goldman Sachs access to a market where assets managed by mutual funds have more than tripled to 6.8 trillion rupees ($150 billion) in the five years to Dec. 31, according to the Association of Mutual Funds of India. The terms of the transaction weren’t disclosed.
Benchmark Asset oversaw 29.35 billion rupees in assets as of Dec. 31. Goldman Sachs, which set up its local fund unit in 2008, had no assets under management at the end of December.
No. 1 Ranking
Goldman Sachs has about 13,600 staff, or 42 percent of its employees, based outside of the Americas, and generates about 20 percent of its revenue from Asia, according to company financial filings.
It ranked as the No. 1 manager of initial public offerings in the Asia-Pacific region last year and was ranked sixth for arranging sales of bonds in dollars, euros and yen in the region, excluding Japan, according to data compiled by Bloomberg. The bank was also one of three hired to manage Hutchison Port Holdings Trust’s $5.5 billion IPO, the world’s largest this year.
Chatterjee and Vijay Karnani will be co-chief executive officers overseeing Goldman Sachs’s Indian unit in Mumbai, according to the memos. Tim Leissner will relocate to Hong Kong from Singapore to take up more senior responsibilities across the region, they said.
Chatterjee joined Goldman Sachs last year following a 16-year career at ICICI Bank, where he served as an executive director with responsibility for corporate and investment banking, project finance, government banking and international banking businesses.
Karnani was appointed head of Goldman Sachs’s securities division in India in 2009. He joined the firm in 1998 in the equity capital markets team, moving to equity derivatives in Hong Kong in 2000 and then to the Asian special situations group in 2006. He was named managing director in 2007 and partner in 2010.
Goldman Sachs, which set up its Indian operations in December 2006 after exiting the 10-year-old joint venture with Kotak Mahindra Group, now has investment banking, offshore asset management, equity trading and sales, fixed income securities and research services in the nation. The company has also deployed more than $2 billion in capital since 2006 through private equity and other investments, it said in April.
The firm employs about 3,000 people in the southern city of Bangalore to provide back-office support and services to its global operations, it said in April. That’s up from about 850 people when Entwistle took over operations in the nation.
Entwistle became a partner at Goldman Sachs in 2008, giving him a share of a special bonus at the end of each year. Before helming Indian operations, he had completed stints as managing director of the financial services group in New York, chief operating officer for Asia ex-Japan and as Hong Kong-based co-head of its Asia technology group in the investment banking unit.
The year that Goldman Sachs split with Kotak Mahindra, the U.S. bank ranked 18th in Indian M&A advisory. It ranked 14th last year, and is No. 2 this year, according to Bloomberg data. The company isn’t among the top 20 banks for share sales in India this year, and ranked No. 16 last year, the data show.
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