Goldman Sachs has appointed Edward Forst, its chief administrative officer, as co-head of its asset management division, one of the largest in the world with $800bn under management.

Mr Forst will share the role with Peter Kraus, who has been there for several years. He replaces Eric Schwartz, who left the firm this year to pursue other interests.

In an internal memo, Goldman said Mr Forst would remain in London, where he moved to in March. No announcement has been made about who will succeed him as chief administrative officer.

Mr Forst, who joined Goldman in 1994, was co-head of operations, technology, finance and services for the past three years

Goldman’s asset management division has maintained a low profile but is among the most successful among the Wall Street banks, with profit margins slightly above the industry average.

In the past two years, Merrill Lynch has sold its asset management division to BlackRock in return for a 49.8 per cent stake in the enlarged group, while Citigroup sold its division to Legg Mason. Goldman, in contrast, appears committed to its division, which has seen rapid growth.

However, the group has suffered unexpectedly poor returns in its hedge fund operations, where its flagship Global Alpha fund fell sharply – along with many other quantitatively managed funds – during the credit market downturn.

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