Goldman Sachs plans to acquire ETF provider Neos Investments for up to $2.25 billion

According to Bloomberg, Goldman Sachs will acquire ETF provider Neos Investments for up to $2.25 billion in cash and equity to expand its presence in the actively managed ETF market. Neos was founded in 2022 and currently offers nearly 20 income-generating ETFs based on options strategies, managing approximately $32 billion in assets.

After the transaction is completed, Goldman Sachs' ETF assets are expected to increase to about $130 billion. Neos co-founders Troy Cates and Garrett Paolella will become partners in Goldman Sachs Asset Management after the deal closes, and the entire Neos team is also expected to join. Goldman Sachs' Asset and Wealth Management division had regulatory assets exceeding $4 trillion as of the end of the second quarter, an increase of over $700 billion from a year ago, with the division's revenue growing by 20% year-over-year.