Dive Brief:

• Former First Republic Bank exec Hafize Gaye Erkan has been named the next CEO for Greystone, the real estate finance and investment company said in a Monday press release.
• Erkan’s abrupt departure as co-CEO of First Republic in January — days after founder Jim Herbert went on medical leave — sent shockwaves that led the company’s stock to tumble 4.4% in one day, according to Bloomberg.
• Erkan will take over at Greystone in September, as one of a disproportionately small number of women CEOs in the financial services sector.

Dive Insight:

At Greystone, Erkan will report to Steve Rosenberg, who is stepping down as the New York-based firm’s CEO but will remain on the company’s board as executive chairman. 

“I am thrilled to welcome Gaye to our firm to drive the next generation of investment and innovation as we pursue strategic growth opportunities, both organically and through acquisitions,” Rosenberg said in the press release. “She is an inspiring and visionary leader with a successful track record in financial services spanning two decades.”

Only 6% of CEO positions in the S&P 500 were held by women, and 4% of financial services institutions in the S&P 500 were headed by women as of June 2021, Deloitte found.

Prior to joining Greystone, Erkan worked for nine years at Goldman Sachs, according to her LinkedIn page. More recently, she spent eight years at San Francisco-based First Republic Bank, rising through various leadership positions including co-chief risk officer, chief deposit officer, chief investment officer, president and co-CEO.

During Erkan’s tenure at First Republic, the bank’s deposits and total assets more than tripled, Bloomberg reported. However, the bank’s stock price has fallen 29% this year — perhaps amid perceived uncertainty surrounding leadership.

Erkan caused a stir in January, when she unexpectedly resigned as First Republic’s co-CEO “to pursue other opportunities,” according to the bank’s press release at the time. 

Now, Erkan is slated to take the reins as chief executive at Greystone, a First Republic client. 

“It was time for a change and for a new challenge, where I can be at a platform where I can utilize all my skill set in banking, private equity, investment and fund management,” Erkan told Bloomberg. “At Greystone, with the real estate business and further expansion plans, there will be a lot more opportunities for growth.”

Looking ahead, Greystone plans to execute a two-part growth scheme, according to the company’s press release. First, the organization will accelerate its core commercial and multifamily real estate lending and capital markets business. And second, the firm will offer expanded lending products, private wealth management and real estate and fintech fund management.