Goldman Sachs has agreed to acquire NEOS Investments, a Connecticut-based firm specializing in options-based income ETFs, in a cash-and-equity transaction valued at up to $2.25 billion. The deal, announced Wednesday, marks a significant step in the bank's expansion into one of asset management's fastest-growing segments and will place Goldman Sachs among the ten largest active ETF managers. The acquisition reflects a broader industry pattern in which large financial institutions are acquiring specialist ETF providers to accelerate their presence in a market long dominated by index giants such as BlackRock, Vanguard, and State Street.

$30 Billion ETF Portfolio Changes Hands

Founded in 2022 and headquartered in Westport, Connecticut, NEOS Investments manages approximately $30 billion across 19 ETFs that employ options strategies to generate income, according to Goldman Sachs. Options-based income ETFs typically use covered calls, put-selling, and similar derivatives strategies to deliver regular yield to investors, making them especially attractive in environments where traditional fixed-income returns have fluctuated. Following the acquisition, Goldman Sachs Asset Management's ETF assets will reach roughly $130 billion, ranking the bank eighth among active ETF managers.

The final purchase price will depend on NEOS meeting certain performance and service milestones, meaning the headline $2.25 billion figure represents a maximum attainable amount rather than a guaranteed payout. The transaction remains subject to regulatory approval, with both firms expecting completion in the first quarter of 2027.

Goldman Sachs Chairman and CEO David Solomon described the acquisition as a strong strategic fit. NEOS brings "a disciplined investment approach" that Solomon called "highly complementary" to Goldman's existing offerings, according to a statement.

Derivative income ETFs currently hold approximately $180 billion in assets, a category that has grown at a compound annual rate exceeding 70% since 2021, per Goldman Sachs data. That trajectory has drawn competitors including JPMorgan Asset Management and BlackRock's derivatives-based ETF lineup, intensifying the race for market share. Marc Nachmann, head of Goldman's asset management division, described the segment as "a fast-growing space in the asset-management business" with continued room for expansion.

Goldman Sachs' Second ETF Acquisition in a Year

The NEOS deal follows Goldman Sachs' $2 billion acquisition of Innovator Capital Management, a specialist in defined-outcome funds, approximately twelve months ago. Together with its existing product lineup, these acquisitions signal the bank's broader ambition to build a more expansive options-based ETF business and compete more directly with rivals that have built large franchises in the income-oriented ETF space.

Goldman Sachs' asset and wealth management unit oversaw $4.04 trillion at the end of the second quarter and generated $4.60 billion in revenue for the period, representing a 20% year-over-year increase. The firm reported approximately $4 trillion in assets under supervision as of June 30, 2026.

NEOS co-founders Troy Cates and Garrett Paolella are expected to join Goldman Sachs Asset Management as partners upon completion of the transaction. The remainder of the NEOS team, including investment and client-service staff, is also expected to transition to Goldman.

Goldman Sachs relied on its internal Global Banking & Markets division for financial advice on the deal. Legal counsel was provided by Wachtell, Lipton, Rosen & Katz and Willkie Farr & Gallagher. NEOS retained Barclays as its exclusive financial adviser and Ropes & Gray as legal counsel, according to the announcement.

Source: Reuters | Goldman Sachs Press Release