Deals & People
Goldman Sachs Amasses $130B ETF Platform With NEOS Acquisition
The recent acquisitions of NEOS Investments and Innovator Capital Management more than triple Goldman Sachs’ assets in exchange-traded funds.
Reported by Matt Toledo
NEOS [Next Evolution Options Strategies] manages $30 billion across 19 options-based ETFs, which will complement Goldman Sachs’ $40 billion in income- and outcome-oriented options-based ETFs. When combined, GSAM will manage $130 billion in ETF assets across NEOS, Goldman Sachs’ existing ETFs and through the firm’s recent acquisition of ETF provider Innovator Capital Management.
The $2.25 billion cash-and-equity transaction for NEOS is expected to close in the first quarter of 2027, pending regulatory approval.
“As investor demand for active ETFs grows, NEOS’ disciplined investment approach is highly complementary to our capabilities across buffer, managed outcome and income strategies. Together, we will give investors a diverse toolkit for different market environments,” Goldman Sachs CEO David Solomon said in a statement. “NEOS’ innovative ETF solutions and intuitive financial education programs have helped them build a strong market presence across a diverse investor base and this acquisition is an excellent strategic and cultural fit.”
NEOS strategies include products that provide monthly income, tax efficiency and diversification.
As part of the acquisition, NEOS investment teams will join Goldman Sachs, with Co-Founders and Managing Partners Troy Cates and Garrett Paolella joining GSAM as partners.