Goldman Sachs to Buy ETF Provider Neos Investments in Up to $2.25B Deal

Goldman Sachs has agreed to acquire ETF provider Neos Investments in a cash-and-stock deal valued at up to $2.25 billion, according to Bloomberg, expanding its footprint in actively managed ETFs. Founded in 2022, Neos currently offers nearly 20 options-strategy income ETFs with about $32 billion in assets under management. After the transaction closes, Goldman's ETF assets are expected to reach roughly $130 billion. Neos co-founders Troy Cates and Garrett Paolella will become partners at Goldman Sachs Asset Management, with the Neos team also expected to move over in full. Goldman's asset and wealth management division, which had more than $4 trillion in regulatory assets at the end of the second quarter, posted 20% year-over-year revenue growth and added over $700 billion in assets versus a year ago.