Goldman Sachs Announces John McNulty to Retire; Head of Investment Management Division to Become Senior Director After 22-year Career

Business Wire, June 6, 2001

Business Editors

NEW YORK--(BUSINESS WIRE)--June 6, 2001

The Goldman Sachs Group, Inc. (NYSE: GS) today announced that John P. McNulty, head of the Investment Management Division and a member of the Management Committee, has elected to retire on June 30 after a 22-year career at the firm.

He will become a Senior Director of the firm at that time. Following Mr. McNulty's retirement, Philip Murphy and Peter Kraus will co-head the Investment Management Division (IMD).

Under Mr. McNulty's leadership, Goldman Sachs has built its investment management business into a global asset management and private wealth management firm with more than $300 billion in assets under management. Mr. McNulty is also credited with leading the expansion of the business from a predominantly money market and fixed income orientation to a geographically diversified franchise with equity and alternative asset products accounting for the majority of revenues.

"John has contributed significantly to the success and market position of the firm," said Henry M. Paulson, Jr., Chief Executive Officer of Goldman Sachs. "Under his leadership, the firm's investment management division has expanded into a successful, global enterprise and we will miss John's judgment and creativity, and wish him and his family the very best.

Mr. McNulty was instrumental in making acquisitions that provided Goldman Sachs with new strategic capabilities. In 1996, the acquisition of CINMan helped the firm to establish a significant market presence in Europe. The acquisition of Liberty Investment Management, later that year, secured the firm's presence in the growth equity area and the 1997 acquisition of Commodities Corporation, brought expertise in hedge funds and in the manager of managers business.

Mr. McNulty joined the firm in 1980 as a Private Wealth Management client advisor in Philadelphia. He received an M.B.A. from Wharton in 1979 and a B.S. from St. Joseph's University in 1974. From 1986 to 1989 he managed and significantly expanded Goldman Sachs' Miami office. From late 1989 to 1994 he created and managed the firm's Special Investments Group, which over the past 10 years has raised over $50 billion primarily for asset management and the Merchant Bank. In 1996 he was named co-head of the Asset Management Division, and in 1999 the head of the Investment Management Division, bringing together Private Wealth Management and Asset Management. Mr. McNulty has focused on leveraging the historic strengths of Private Wealth Management while developing and delivering a broad range of sophisticated advisory services for the high net worth market. He became a partner in 1990 and a managing director in 1996.

Mr. Murphy took over management of Private Wealth Management (PWM) in 1999 and was appointed to serve on the firm's Management Committee. Prior to moving to New York, Phil served as President of Goldman Sachs (Asia) L.L.C. for two and a half years, during which time he was based in Hong Kong and oversaw the firm's business in Asia outside of Japan. Mr. Kraus joined Mr. Murphy in February as co-head of PWM. Prior to his move to PWM, he served as co-head of the Investment Banking Division's Financial Institutions Group.

The Goldman Sachs Group, Inc. is the leading global investment banking and securities firm, providing a full range of investing, advisory and financing services worldwide to a substantial and diversified client base, which includes corporations, financial institutions, governments and high net worth individuals. Founded in 1869, it is one of the oldest and largest investment banking firms. The Firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world.