Goldman Sachs agreed on 12 August to acquire NEOS Investments, a provider of systematic options-based income exchange-traded funds, for up to $2.25bn in cash and equity.
Why Goldman Sachs Asset Management is buying NEOS Investments
Goldman said NEOS complements its buffer, managed-outcome and income ETF strategies. With Innovator, which it bought earlier, and NEOS, Goldman Sachs Asset Management would oversee more than $130bn of ETF assets and become the eighth-largest active ETF manager, according to Morningstar data cited by the bank.
“As investor demand for active ETFs grows, NEOS' disciplined investment approach is highly complementary to our capabilities across buffer, managed outcome and income strategies.”
Deal terms and financing
The consideration of up to $2.25bn in cash and equity is subject to certain performance and/or service commitments. NEOS's founders and full team are expected to join Goldman Sachs Asset Management on completion.
Regulatory approvals and timing
Closing is expected in the first quarter of 2027, subject to regulatory approval and customary conditions.
Market context
Derivative income ETFs have grown to about $180bn of assets industry-wide, with annual growth above 70% since 2021, according to Morningstar figures cited by Goldman. NEOS was founded in 2022.
