Mike Novogratz’s Galaxy Digital Capital Management has again raided Goldman Sachs for an executive to manage its blockchain advisory. Sources told Bloomberg that banker Ian Taylor will join Galaxy to oversee the group’s advisory-services arm.
Novogratz is one of the leading crypto billionaires who has left their investment banking positions to join the crypto bandwagon. On the other hand, according to his LinkedIn profile, Taylor was a managing director at Goldman Sachs. His entry into Galaxy Digital will plunge him into the realm of Blockchain Advisory Services
Goldman Sachs: The Targeted Gem
It is noteworthy that at one time, Mike Novogratz was a partner at Goldman Sachs. In February 2018, the shrewd investor raised $250 million and has since then been on a poaching expedition. He has managed to entice top executives from his top employer to join his company.
In April 2018, CNBC reported that Novogratz hired Goldman executive Richard Kim as the chief operating officer of Galaxy Digital. Kim joined former Goldman analyst who exited conventional finance for crypto.
Another investment banker who left Goldman Sachs to join Crypto is former Goldman executive Michael Bucella. He joined BlockTower Capital, a crypto asset investment firm founded by former Goldman vice president Matt Goetz.
Additionally, a one-time managing director of Goldman Sachs, James Radecki, exited in 2016 to join the crypto ecosystem. He is now the global head of business development for Cumberland Mining, a leading trader of cryptocurrency.
Drexel Burnham Lambert of Crypto
Novogratz, once said that he intends to create a Goldman Sachs of crypto but in June changed his mind. He now aspires to become the Drexel Burnham Lambert of the industry. At a Bloomberg Invest conference in London, he pointedly said that:
“I was originally saying we were going to build the Goldman Sachs of this space. Now, and I know this is going to get me in trouble, but it’s actually more like Drexel. If you think about what Mike Milken and his guys did, they helped credentialise junk bonds, high yield as an asset class. They were the proselytes, the traders, the bankers,”
Drexel Burnham Lambert was an American investment bank that was forced into bankruptcy in February 1990 for insider trading. At its peak, Drexel Burnham Lambert was the fifth largest bank in the U.S. Its finances were also not sound after the crash of the junk bond market in 1989.