Goldman Sachs acquiring NEOS Investments ETF provider for $2.25B

Goldman Sachs announced an statement to get NEOS Investments, a supplier of options-based income exchange-traded funds, successful a woody worthy up to $2.25 cardinal successful currency and equity, the institution said connected Wednesday.

Founded successful 2022 and based successful Westport, Connecticut, NEOS manages $30 cardinal successful assets crossed 19 options-based income ETFs, according to Goldman Sachs. The acquisition volition bring Goldman Sachs Asset Management's full ETF assets to astir $130 cardinal and presumption it arsenic a top-eight progressive ETF manager, the institution said.

The transaction information is taxable to the accomplishment of definite show and work commitments, Goldman Sachs said. The woody is expected to adjacent successful the archetypal 4th of 2027, pending regulatory support and different customary closing conditions.

Once the transaction closes, NEOS co-founders Troy Cates and Garrett Paolella are acceptable to instrumentality connected spouse roles astatine Goldman Sachs Asset Management. The broader NEOS workforce, spanning concern and lawsuit work functions, is likewise anticipated to transportation to the firm.

"As capitalist request for progressive ETFs grows, NEOS' disciplined concern attack is highly complementary to our capabilities crossed buffer, managed result and income strategies," Goldman Sachs Chairman and CEO David Solomon said successful a statement.

Marc Nachmann, who oversees Goldman's plus absorption business, said the steadfast sees important country to grow. Nachmann pointed to the broader accidental successful a speech with Bloomberg, describing progressive ETFs arsenic "a accelerated increasing abstraction successful the asset-management business."

Industry-wide, derivative income ETFs person grown to astir $180 cardinal successful assets nether absorption and person posted a compound yearly maturation complaint of much than 70% since 2021, according to Morningstar information cited by Goldman Sachs.

The NEOS acquisition comes astir a twelvemonth aft Goldman paid $2 cardinal for Innovator Capital Management, which specializes successful defined-outcome ETFs, according to Bloomberg. Together, the 2 acquisitions and Goldman Sachs Asset Management's existing concern signifier what the steadfast described arsenic a wide options-based ETF franchise.

Goldman's plus and wealthiness absorption division, which reported $4.04 trillion successful assets nether supervision astatine the extremity of the 2nd quarter, posted $4.60 cardinal successful gross for the quarter, reflecting a year-over-year summation of 20%. Goldman Sachs oversees astir $4 trillion successful assets nether supervision arsenic of June 30, 2026, the institution said.

Goldman Sachs Global Banking & Markets served arsenic fiscal advisor connected the deal, with Wachtell, Lipton, Rosen & Katz and Willkie Farr & Gallagher LLP acting arsenic ineligible counsel. Barclays served arsenic exclusive fiscal advisor to NEOS, and Ropes & Gray LLP served arsenic NEOS's ineligible counsel, Goldman Sachs said.