Obama lures buyout exec to Treasury post

Hellman & Friedman will lose Jeffrey Goldstein, a managing director in the firm’s New York office and former World Bank chief, as it continues to close in on $10bn for Fund VII.

Jeffrey Goldstein, a managing director at buyout firm Hellman & Friedman, has been nominated to the US Treasury as undersecretary for domestic finance.

As undersecretary for domestic finance, Goldstein will be chief advisor to the Treasury secretary and deputy secretary and oversee both the Bureau of Public Debt and the Financial Management Service, helping decide when and how much the Treasury borrows, at what interest rates and for how long.

A former chief financial officer at the World Bank, Goldstein joined H&F in 2004. He is also a director of turnaround specialist Alix Partners and a member of the advisory committee at hedge fund Grosvenor Capital Management.

Goldstein, who helps lead H&F’s New York office, is departing the firm during the fundraising for its seventh fund, which has so far held a first close on $6 billion on its way to a $10 billion target. His departure will not, however, trigger the key man clause, as the three managing directors in the first tier of the fund’s key-man clause – Brian Powers, Philip Hammarskjold and Patrick Healy – remain in place, according to a report in the Wall Street Journal.

“It is a critical time for our economy and we support Jeffrey’s decision to pursue his continued commitment to public service,” H&F said in a statement.

Last month the Obama administration launched an overhaul of financial regulation that would see additional oversight of both hedge and private equity funds. The government plans to give the Federal Reserve new powers to take over firms whose collapse would be seen as a danger to the economy.

H&F was this year named best LBO firm in North America in Private Equity International's global awards.