Goldman Sachs announced that it has agreed to acquire Innovator Capital Management, a major pioneer in defined outcome ETFs, in a transaction valued at approximately $2 billion in cash and equity, subject to performance targets. The deal is expected to close in the second quarter of 2026, pending regulatory approval, and will add $28 billion in assets under supervision across 159 defined outcome ETFs to Goldman Sachs Asset Management’s platform.
Innovator manages ETF strategies spanning income, targeted buffer, and growth objectives. Defined outcome ETFs have become one of the fastest-growing categories within the active ETF market, expanding at a 66% compound annual growth rate since 2020 as investors increasingly seek structured strategies in accessible ETF formats. Global active ETF assets reached $1.6 trillion and have been growing at a 47% CAGR since 2020, reflecting heightened investor demand for customizable, tax-efficient portfolio solutions. Goldman Sachs said the acquisition will meaningfully expand its ETF lineup, strengthen its product roadmap, and enhance its capabilities across one of the most rapidly scaling areas of public markets.
Following the acquisition, Goldman Sachs Asset Management and Innovator will oversee more than 215 ETF strategies globally, representing over $75 billion in combined assets under supervision, placing the firm among the top 10 active ETF providers. Defined outcome ETFs use derivatives and options-based techniques to offer objectives such as downside buffers, targeted growth, or yield enhancement, enabling advisors and individuals to tailor portfolio exposures through the ETF wrapper.
All four Innovator co-founders and senior leaders — CEO Bruce Bond, President John Southard, Chief Investment Officer Graham Day, and Head of Distribution Trevor Terrell — will join Goldman Sachs Asset Management as part of the firm’s Third-Party Wealth and ETF teams. Innovator’s workforce of more than 60 employees is also expected to transition to the firm, with investment management and service providers remaining unchanged.
Goldman Sachs said the acquisition aligns with its strategy to expand durable revenue streams and advance its leadership in fast-growing investment categories, complementing its existing Direct Indexing, separately managed account, alternative investment, and active ETF offerings. Founded in 1869, Goldman Sachs oversees approximately $3.5 trillion in assets under supervision as of September 30, 2025.
Innovator Capital Management, known for launching the first Buffer ETFs and building the most extensive lineup in the category, managed roughly $28 billion in assets as of September 30, 2025.
KEY QUOTES:
“Active ETFs are dynamic, transformative, and have been one of the fastest-growing segments in today’s public investment landscape. By acquiring Innovator, Goldman Sachs will expand access to modern, world-class investment products for investor portfolios.”“Innovator’s reputation for innovation and leadership in defined outcome solutions complements our mission to enhance the client experience with sophisticated strategies that seek to deliver targeted, defined outcomes for investors.”
David Solomon, Chairman and CEO, Goldman Sachs
“This transaction is a pivotal milestone for our business. Goldman Sachs has a long history of discerning emerging trends and important directional shifts within the asset management industry.”“We are excited to deliver world-class investment solutions to clients within the ETF framework and expand our business in this high-growth, sector-leading category. These synergies, among numerous others, make Goldman Sachs an ideal partner for us.”
Bruce Bond, CEO, Innovator Capital Management
