At a glance
- The transaction would add Neos's nearly two dozen options-based income ETFs — roughly $32 billion in assets, according to data compiled by Bloomberg — to Goldman's actively managed ETF roster.
- Westport, Connecticut-based Neos was founded in 2022.
- The Neos agreement follows Goldman's deal late last year to buy Innovator Capital Management for $2 billion, adding a defined-outcome ETF specialist.
Goldman Sachs Group Inc. has agreed to buy Neos Investments for as much as $2.25 billion in a cash-and-equity deal, Bloomberg News reported. The transaction would add Neos's nearly two dozen options-based income ETFs — roughly $32 billion in assets, according to data compiled by Bloomberg — to Goldman's actively managed ETF roster.
Westport, Connecticut-based Neos was founded in 2022. Its flagship options-based funds have attracted inflows with double-digit returns and monthly income payouts, and the firm has touted favorable tax treatment for boosting after-tax returns. Co-founders Troy Cates and Garrett Paolella will become partners at Goldman Sachs Asset Management when the deal closes, with the full Neos team expected to join.
The Neos agreement follows Goldman's deal late last year to buy Innovator Capital Management for $2 billion, adding a defined-outcome ETF specialist. With Neos, Goldman's ETF assets would rise to about $130 billion. "Neos has been on a tremendous growth trajectory," said Marc Nachmann, who oversees Goldman's money-management arm.
The deal would give Goldman a second active ETF product line to pair with Innovator's defined-outcome funds. Neos packages institutional-level options strategies into ETFs with monthly payouts, a structure that has drawn inflows since the firm's 2022 founding.
If completed, the combined ETF platform would hold roughly $130 billion, making Goldman a larger active ETF issuer at a time when the category is growing. Keeping the Neos founders inside Goldman suggests the bank is paying for product development and distribution momentum, not just current assets.
The $2.25 billion price looks like a premium for Neos's growth rather than for current profits. The firm is young — founded in 2022 — and the deal would bring its founders into the partnership, a structure that suggests retention is a priority.
Goldman executives have said the firm remains open to further acquisitions, particularly to complement its push into private markets, where it faces Blackstone and KKR. That public posture, combined with the two ETF purchases, points to an asset-management strategy built on buying into areas of growth rather than building from scratch.
The deal has not closed, and no closing date was reported. Goldman executives have said the firm remains open to further acquisitions, particularly to complement its private-markets push.
Reported by the Deals & PE desk from Financial Advisor Magazine and WealthManagement.com. Published . Corrections
