Goldman Sachs Buys Neos for $2.25b
Goldman Sachs has agreed to acquire Neos Investments, a provider of options-based income exchange-traded funds, in a deal worth up to $2.25 billion in cash and equity, expanding its ETF assets to $130 billion
Goldman Sachs has agreed to acquire Neos Investments, a provider of options-based income exchange-traded funds, in a deal worth up to $2.25 billion in cash and equity. The acquisition is expected to close in the first quarter of 2027, pending regulatory approval and other customary closing conditions.
Neos manages $30 billion in assets across 19 options-based income ETFs. The acquisition will bring Goldman Sachs Asset Management's total ETF assets to approximately $130 billion, positioning it as a top-eight active ETF manager.
The deal is subject to the achievement of certain performance and service commitments. Neos co-founders Troy Cates and Garrett Paolella will become partners at Goldman Sachs Asset Management after the deal is completed.
Goldman Sachs oversees approximately $4 trillion in assets under supervision as of June 30, 2026. The company's asset and wealth management division reported $4.04 trillion in assets under supervision at the end of the second quarter.
## What it means The acquisition is a significant move for Goldman Sachs, as it expands its presence in the fast-growing derivative income ETF market. Derivative income ETFs have grown to approximately $180 billion in assets under management and have posted a compound annual growth rate of more than 70% since 2021.
The deal will also give Goldman Sachs a $30 billion options-based ETF platform across 19 funds, combined with prior deals, lifting its ETF assets above $130 billion. This will help the company compete with rivals like BlackRock in the derivative income ETF market.
## Why it matters The acquisition of Neos Investments is a strategic move for Goldman Sachs, as it looks to expand its offerings in the active ETF space. The deal will provide the company with a significant presence in the options-based income ETF market, and will help it to compete with other major players in the industry.
The growth of derivative income ETFs has been rapid in recent years, with assets under management increasing by more than 70% since 2021. This growth is expected to continue, driven by investor demand for active ETFs. The acquisition of Neos Investments will position Goldman Sachs well to take advantage of this growth, and to expand its presence in the ETF market.
