Goldman Sachs to acquire NEOS in $2.25B ETF deal

Goldman Sachs has agreed to acquire NEOS Investments for up to $2.25 billion, adding about $30 billion in assets and 19 options-based income ETFs to its asset management business. Summary Goldman Sachs will pay up to $2.25 billion through a cash-and-equity transaction. NEOS managed about $30 billion across 19 ETFs as of June 30. The purchase will lift Goldman’s ETF platform above $130 billion in assets. NEOS co-founders will join Goldman Sachs Asset Management as partners after closing. Goldman Sachs sets first-quarter 2027 closing target Goldman Sachs said in an Aug. 12 announcement that the final payment will depend on performance and service commitments included in the acquisition agreement. The transaction is scheduled to close during the first quarter of 2027, subject to regulatory clearances and customary closing conditions. Structured as a mix of cash and equity, the deal will bring NEOS’ investment products, staff, and client relationships into Goldman Sachs Asset Management. The bank did not provide a breakdown of the cash and stock portions or identify the regulators that must approve the purchase. Based in Westport, Connecticut, NEOS has built a range of 19 systematic options-based income ETFs since its launch in 2022. Goldman placed the firm’s assets under management at approximately $30 billion as of June 30, while Bloomberg data cited by Reuters estimated that NEOS had reached about $32 billion. You might also like: Goldman Sachs splits from banking lobby over the CLARITY Act Options-based income funds generally hold securities or index exposure while selling options contracts to collect premiums. The income can soften some losses or support regular distributions, although selling calls may limit how much of a strong market rally reaches shareholders. NEOS applies such strategies across stock indexes, bonds, and other market exposures. Its products include funds tied to the S&P 500, Nasdaq-100, high-yield bonds, and U.S. Treasury securities, giving Goldman an established set of income-focused products rather than requiring the bank to build each strategy internally. Reuters reported that the NEOS S&P 500 High Income ETF, one of the provider’s main funds, returned about 19% over the previous year and approximately 15% on an annualized basis since its launch. Any past performance, however, does not guarantee that investors will receive comparable returns in later periods. NEOS deal takes Goldman Sachs ETF assets above $130B Once completed, the purchase will take Goldman Sachs Asset Management’s total ETF assets beyond $130 billion, according to the bank. Approximately $80 billion of the combined amount will be held in actively managed ETFs. Morningstar figures included in the announcement would place Goldman as the eighth-largest active ETF provider by assets as of June 30.