Alasdair Warren, a Goldman Sachs partner who was recruited to help lead Deutsche Bank’s investment bank less than three years ago, has become the latest senior executive to exit the German lender.
His departure was announced in an internal memo on Tuesday, which said Mr Warren was leaving “to pursue other opportunities”. Deutsche confirmed the contents of the memo, released alongside a separate notice that Chris Blum and Scott Sartorius, co-heads of the US leveraged finance business for the past year, had decided to leave.
Mr Warren, who had come up through the equity capital markets and private equity advisory division at Goldman Sachs in London, was one of the early hires made by John Cryan, the Deutsche chief executive ousted in April amid a leadership crisis.
“I am grateful to Alasdair for his contributions to Deutsche over the past two years or so,” Garth Ritchie, the bank’s co-president, said in the memo. Mr Warren led Deutsche’s corporate finance business in Europe, the Middle East and Africa and was a co-head of its corporate and investment bank in the region.
Christian Sewing, who took over as Deutsche’s new head, had vowed to make a series of changes to the bank, including deep cuts across the organisation. The cuts have been hitting Deutsche’s US investment banking business especially hard.
Recruiters said that more turmoil is likely, noting that many Deutsche employees have not been reassured by Mr Sewing’s talk of commitment to America.
“We’ve definitely seen a big uptick in candidates [from Deutsche] coming through,” said Oliver Cooke, head of Selby Jennings, a recruitment firm, in the US. “People are definitely worried about what’s going to happen down the road, and so they’re proactively reaching out.”
One person briefed on Mr Warren’s departure said the bank was attempting to “delayer” its business. Throughout his tenure, Deutsche struggled to hold on to its position as Europe’s leading bank for dealmaking and capital market activity.
Mr Warren’s departure means another promotion for Mark Fedorcik, currently co-president of the investment bank, who will add responsibility for the corporate finance business in Emea. Last month, Mr Fedorcik, a former head of US corporate finance, told the FT that Deutsche was now “doing a much better job on a systemic basis of looking at the underperformers.”
The exiting leverage finance bankers are to replaced by Ian Dorrington and Manfred Affenzeller.
Deutsche ranks eighth in US leveraged-loan underwriting so far this year, up from ninth last year but down from sixth in 2016, according to figures from Bloomberg. Analysts have wondered how Deutsche can keep running a viable business on Wall Street, assuming it cannot make heavy cuts to compliance, legal or other support functions.
Meanwhile, rival banks across New York have been alert to the troubles at Deutsche. One senior executive at a top non-US bank active in real estate said: “we’re getting a lot of résumés from Deutsche — and not just in commercial real estate.”
Bloomberg and Business Insider earlier reported on the memos.