Goldman Sachs Group Inc. is set to acquire NEOS Investments for a deal valued at up to $2.25 billion, paid in a combination of cash and equity. This acquisition will substantially boost Goldman's presence in the actively managed exchange-traded fund (ETF) market. NEOS, founded in 2022, specializes in systematic options-based income ETFs and currently manages $30 billion in assets across 19 such funds as of June 30, 2026.
The strategic move will integrate NEOS's offerings with Goldman Sachs Asset Management's existing $40 billion in income and outcome-oriented options-based ETF solutions, including those from Innovator ETFs, which Goldman previously acquired. The combined platform is expected to manage approximately $80 billion in active ETFs within a $130 billion global ETF business, positioning Goldman Sachs Asset Management as a top eight active ETF provider. This expansion is driven by the growing demand for derivative income ETFs, a sector that has seen a compound annual growth rate of over 70% since 2021, reaching approximately $180 billion in assets under management.
Goldman's acquisition of NEOS highlights a broader trend towards the "democratization" of sophisticated options-based strategies, previously accessible mainly to institutional investors. Marc Nachmann, global head of asset and wealth management at Goldman, noted that this move makes advanced products available to a wider audience, catering to a long-term shift where clients seek income-earning assets. The transaction is anticipated to close in the first quarter of 2027, pending regulatory approvals. Following the acquisition, NEOS co-founders Troy Cates and Garrett Paolella, pioneers in the options-based ETF industry, will join Goldman Sachs Asset Management as Partners, with the entire NEOS team also expected to transition.
