Goldman Sachs's Rich Friedman gives up day-to-day oversight of private-investing business as rising executives step in

• Rich Friedman, who has run Goldman's principal investing area since 1991, is stepping back from day to day management of what is now known as the merchant bank. He'll remain on the management committee and work more closely with CEO David Solomon on firmwide strategy.
• Sumit Rajpal and Andrew Wolff will become head of the merchant bank, keeping a continued focus on private equity, while Tom Connolly continues to oversee the private credit business.
• Julian Salisbury, head of the special situations group, will add oversight of real estate lending and investing activities firmwide.

Goldman Sachs's Rich Friedman, who has run the private investing business now known as the merchant bank since 1991, will give up day-to-day management responsibilities to become chairman.

Friedman will remain a member of the management committee and spend more time working with CEO David Solomon on strategy, according to an internal memo signed by Solomon and two lieutenants. Friedman will continue as chairman of the merchant bank's investment committees.

See also: 'It's good to be Rich': Meet the Goldman Sachs banker who has built a private investing empire that goes head-to-head with Blackstone - and you've probably never heard of him

The unit will now be run by Sumit Rajpal and Andrew Wolff, who will principally oversee the private equity business, with Tom Connolly continuing to run the private credit business. Wolff has been running the international operations of the merchant bank, while Rajpal is credited with helping Friedman come up with the idea for Goldman's digital consumer bank Marcus and other successful financial-services investments.

Julian Salisbury, head of the special situations group and also a member of the management committee, will take on added responsibility for the real estate investing activities across the merchant bank, the special situations group and the consumer and investment management division, the memo said.

Business Insider published a profile of Friedman last week, which detailed his 35-year career, the influence he's had over Goldman's corporate strategy and some of his most spectacular investment wins and losses.

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