Goldman Sachs will acquire Neos Investments for $2.3 billion to strengthen its position in the active ETF market.

Goldman Sachs Group will acquire Neos Investments for up to $2.25 billion to expand its asset management business in the actively managed exchange-traded fund market. Marc Nachmann, head of Goldman Sachs Asset Management, stated that this cash-and-stock deal will bring a rapidly growing ETF issuer into Goldmans product lineup. Data compiled by Bloomberg shows that this relatively recent company has launched nearly 20 income-seeking ETFs based on options strategies, managing about $32 billion in assets. In recent years, these types of funds have become popular among various investors due to their higher yield distributions. The Neos platform packages complex institutional-grade strategies, making them accessible to a broader range of investors. Nachmann stated in an interview, Neos has been on a very strong growth trajectory. Actively managed ETFs are a rapidly growing area in the asset management industry. In recent months, Goldman Sachs has been further expanding its ETF business. At the end of last year, the bank reached an agreement to acquire Innovator Capital Management for $2 billion. Through the acquisition of Innovator, Goldman Sachs Asset Management gained a company known for its outcome-oriented ETFs, and acquiring Neos will further enhance its options-based ETF offerings. After the completion of this latest acquisition, the ETF assets under Goldmans management will increase to approximately $130 billion.