Goldman Sachs Group Inc. has reshuffled the leadership of the banking unit that counts other banks as clients. Mike Esposito, who currently co-heads the global financial institutions group – aka ‘FIG’ - will be promoted to chairman of that unit effective 1/1/17.  He will be replaced by Luke Sarsfield, who is COO of Goldman’s investment-banking division and will split the role with FIG co-chief Todd Leland, based in London.

The reshuffling comes as Goldman has sought to deepen its reach among financial institutions. The bank, which has long counted on hedge funds to generate trading business, has looked for ways to win more business from other asset managers, including leaning more heavily on the relationships cultivated on the investment-banking side of the house.

Mr. Esposito … joined Goldman Sachs in 1992 in New York and became a partner in 2000. He has been co-head of FIG since 2007 and has worked on deals including Banco Santander’s takeover of Sovereign Bancorp. as the financial crisis unfolded.

Mr. Sarsfield …  joined Goldman in 1999 and was a banker to medical-device companies. He later ran Goldman’s health-care banking group and was promoted to COO of the investment-banking division, Goldman’s second-largest.

That job has been a steppingstone for executives who have gone on to bigger jobs. Stephen Scherr, who was COO of the investment bank from 2005 to 2007, was later made Goldman’s strategy chief and now runs its consumer bank. Jim Esposito held the COO role, as did Gregg Lemkau, now a co-head of M&A.