The Goldman Sachs Group has announced that it is has completed its acquisition of NextCapital Group.
The move accelerates the expansion of Goldman Sachs’ services to the growing defined contribution (DC) retirement market through personalised managed accounts and digital advice.
NextCapital’s platform will become part of Goldman Sachs Asset Management’s multi-asset solutions business and all 150 employees join.
David Solomon, chairman and CEO of Goldman Sachs, said: “This acquisition accelerates our investment in technology to build compelling client solutions in asset management. This is an area of strategic focus for us, and we are excited to welcome the talented team at NextCapital as we work to create even more innovative ways to serve the growing defined contribution market.”
Luke Sarsfield, co-head of Goldman Sachs Asset Management, added: “Individuals saving for retirement are confronting market volatility and higher inflation that impacts their spending needs and investment returns. Many investors want personalised planning and managed account solutions that can recalibrate asset allocations and contribution strategies to reflect changing markets and participant circumstances over time. We look forward to combining our expertise and resources with NextCapital in the DC market as we seek to improve future plan design and participant outcomes.”
“By joining Goldman Sachs, we believe we can address a challenge that has been a thorn in the side of the retirement industry for decades: the struggle to effectively prepare the majority of investors for retirement,” said John Patterson, chief executive of NextCapital. “We strive to do this by engaging workplace participants and IRA investors in cost-effective, personalised and managed retirement plans.”
“We are committed to delivering innovative retirement solutions and implementation expertise for both DC and defined benefit plans,” said Greg Calnon, head of MAS at Goldman Sachs Asset Management. “NextCapital brings exciting new personalisation and technology capabilities and a creative spirit to our comprehensive suite of retirement solutions.”