Goldman Sachs to Acquire ETF Provider Neos in $2.3B Deal

(Bloomberg) -- Goldman Sachs Group Inc. volition wage arsenic overmuch arsenic $2.25 cardinal to bargain Neos Investments, expanding its plus manager's scope successful the actively managed exchange-traded money market.

The cash-and-equity woody volition adhd a fast-growing ETF issuer to the Wall Street giant's roster of offerings, according to Marc Nachmann, who oversees Goldman's money-management arm. The comparatively caller upstart is down astir 2 twelve options-based income ETFs commanding immoderate $32 cardinal successful assets, according to information compiled by Bloomberg.

Such funds became fashionable with a assortment of investors successful caller years acknowledgment to their high-yielding payouts. The Neos level packages and makes disposable complex, institutional-level strategies for a broader segment.

"Neos has been connected a tremendous maturation trajectory," Nachmann said successful an interview. "Active ETFs are a accelerated increasing abstraction successful the asset-management business."

Goldman has been pushing further into the ETF beingness successful caller months, striking a woody precocious past twelvemonth to bargain Innovator Capital Management for $2 billion. With the Innovator purchase, the bank's plus manager gained a steadfast known for its defined-outcome ETFs, portion the slope is expanding its options-based ETF offerings with the Neos agreement.

The latest acquisition volition propulsion Goldman's ETF assets to astir $130 billion.

Since its founding successful 2022, Westport, Connecticut-based Neos has attracted inflows with immoderate of its flagship options-based funds providing lucrative double-digit returns that wage retired monthly income to investors. It has besides touted its quality to utilize favorable taxation attraction for its offerings to boost after-tax returns.

Troy Cates and Garrett Paolella, Neos co-founders, volition go partners astatine Goldman Sachs Asset Management aft the woody is completed. The afloat Neos squad is expected to articulation the concern arsenic well.

Goldman's asset- and wealth-management unit, led by Nachmann, had much than $4 trillion of assets nether supervision astatine the extremity of the 2nd quarter. That was up much than $700 cardinal from a twelvemonth earlier. Revenue successful the portion accrued 20%.

Top executives person said successful caller months Goldman remains unfastened to further acquisitions, peculiarly to complement its propulsion into backstage markets successful the conflict against larger players specified arsenic Blackstone Inc. and KKR & Co.