Goldman Sachs to Acquire ETF Provider Neos in $2.3 Billion Deal
Goldman Sachs Group Inc. will pay as much as $2.25 billion to buy Neos Investments, expanding its asset manager’s reach in the actively managed exchange-traded fund market.
The cash-and-equity deal will add 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 relatively new upstart is behind nearly two dozen options-based income ETFs commanding some $32 billion in assets, according to data compiled by Bloomberg.
Such funds became popular with a variety of investors in recent years thanks to their high-yielding payouts. The Neos platform packages and makes available complex, institutional-level strategies for a broader segment.
“Neos has been on a tremendous growth trajectory,” Nachmann said in an interview. “Active ETFs are a fast growing space in the asset-management business.”
Goldman has been pushing further into the ETF universe in recent months, striking a deal late last year to buy Innovator Capital Management for $2 billion. With the Innovator purchase, the bank’s asset manager gained a firm known for its defined-outcome ETFs, while the bank is expanding its options-based ETF offerings with the Neos agreement.
See more: Goldman Plays Options Offense: Acquiring NEOS to Build Active ETF Powerhouse
