Lehman Brothers has continued the expansion of its pensions advisory operation by hiring a managing director from Goldman Sachs.

Catherine Claydon has left her post in Goldman's pensions and insurance strategy group to take a similar position at Lehman. She worked at Goldman for 14 years. Lehman declined to comment. Claydon is the latest banker to join Lehman's pensions advisory group, launched in February when the bank hired Alan Rubenstein, one of the biggest names in corporate pensions restructuring, from Morgan Stanley. He has recruited Gareth Derbyshire from Merrill Lynch and Jos Vermeulen from Psolve Asset Solutions, an investments consultancy. Investment banks are establishing expertise in pensions advisory work to take advantage of companies' efforts to address big pension deficits. Financial News revealed last month that Goldman Sachs, which has the biggest pensions advisory group of any investment bank in Europe, has started a pension fund buyout business led by Addy Loudiadis, its former co-head of European investment banking. The new businesses will offer to buy out pension scheme liabilities from the companies that sponsor them. While others such as Deutsche Bank and Royal Bank of Scotland have backed similar funds, Goldman is unusual in that it will run its fund, raising concerns over conflicts of interest, which have affected its private equity business.