Goldman Sachs to buy ETF manager NEOS in $2.25bn deal

Goldman Sachs has agreed to acquire NEOS Investments, a firm focused on systematic options-based income exchange-traded funds (ETFs).

The consideration totals up to $2.25bn in cash and equity, subject to certain performance and/or service commitments.

As of 30 June 2026, NEOS oversaw $30bn in assets across 19 options-based income ETFs. The firm was established in 2022.

Goldman Sachs said the transaction would add to its range of derivative-based ETF products.

As of 30 June 2026, Goldman Sachs Asset Management, Innovator from Goldman Sachs Asset Management and NEOS together managed more than $130bn in ETF assets under supervision.

NEOS co-founder Troy Cates said: “As we think about the next chapter for our business, Goldman Sachs Asset Management is a partner that shares our commitment to investment excellence and innovation. Together, we’ll combine NEOS’ entrepreneurial spirit with Goldman Sachs’ scale, expertise and resources to expand the reach of NEOS’ solutions and deliver even greater value for our investors.”

Citing Morningstar data, Goldman Sachs said the combined business would rank as the eighth largest active ETF manager as of 30 June 2026.

After the transaction is completed, NEOS co-founders and managing partners Troy Cates and Garrett Paolella are set to join Goldman Sachs Asset Management as partners.

Goldman Sachs also said it expects the broader NEOS team, including founders, investors and client service staff, to join Goldman Sachs Asset Management once the deal closes.

The deal is expected to close in the first quarter of 2027, pending regulatory approval and other customary closing conditions.

Goldman Sachs CEO and chairman David Solomon said: “As investor demand for active ETFs grows, NEOS’ disciplined investment approach is highly complementary to our capabilities across buffer, managed outcome and income strategies. Together, we will give investors a diverse toolkit for different market environments.

“NEOS’ innovative ETF solutions and intuitive financial education programs have helped them build a strong market presence across a diverse investor base and this acquisition is an excellent strategic and cultural fit.” 

Last year, Goldman Sachs has signed an agreement to acquire Innovator Capital Management, a provider of defined outcome exchange-traded funds (ETFs), in a transaction worth around $2bn. 

Innovator currently manages 159 defined outcome ETFs. 

Goldman Sachs Asset Management will add $28bn in assets under supervision (AUS) from Innovator