Goldman Sachs Group will acquire NEOS Investments for up to $2.25 billion (approximately ¥358 billion) in a combination of cash and stock, bringing its options-based ETFs under the group to strengthen active ETFs in its asset management business.
Goldman Sachs Group has announced plans to expand its asset management division's actively managed ETF business by acquiring NEOS Investments. The purchase price has been reported at up to $2.25 billion, with the acquisition to be completed through a combination of cash and stock.
NEOS offers nearly 20 income-focused ETFs that use options, with assets under management of approximately $32 billion, according to Bloomberg data. The acquisition will expand Goldman's ETF lineup by harnessing NEOS's growth potential.
Following completion of the acquisition, NEOS's co-founder is expected to become a partner at Goldman Sachs Asset Management, while all NEOS employees are expected to join the division. As a result, Goldman's ETF assets under management are expected to expand to approximately $130 billion.
Based in Westport, Connecticut, NEOS highlights the fact that some of its flagship options-based funds pursue high returns while paying monthly distributions. Goldman has been expanding its ETF business, including by entering into an agreement late last year to acquire Innovator Capital Management.