Goldman Sachs has agreed to acquire NEOS Investments for consideration of up to $2.25 billion in cash and equity, expanding Goldman Sachs Asset Management’s options-based ETF capabilities and creating a combined platform with approximately $80 billion in active ETFs.
The consideration is subject to the achievement of certain performance and service commitments. The transaction is expected to close in the first quarter of 2027, subject to regulatory approval and customary closing conditions.
Founded in 2022, NEOS manages approximately $30 billion across 19 systematic options-based income ETFs as of June 30, 2026.
The acquisition will add those assets to approximately $40 billion of income and outcome-oriented options-based ETF solutions already offered by Goldman Sachs Asset Management.
Combined with Goldman Sachs’ existing ETF capabilities and Innovator from Goldman Sachs Asset Management, the broader franchise would oversee more than $130 billion in global ETF assets under supervision as of June 30.
The combination is also expected to position Goldman Sachs Asset Management as the eighth-largest active ETF manager, based on Morningstar data as of June 30, with approximately $80 billion across active ETFs.
NEOS specializes in options-based ETFs designed to provide monthly income, tax efficiency and portfolio diversification.
The acquisition comes as demand for derivative income ETFs continues to grow rapidly. The category has expanded to approximately $180 billion in industry-wide assets under management and has generated a compound annual growth rate of more than 70% since 2021, according to Morningstar.
Goldman Sachs sees growing investor demand for strategies designed to generate income, navigate interest-rate volatility and manage portfolio risk through the ETF structure.
NEOS has been one of the faster-growing participants in that market since introducing its flagship options-based income ETF suite in 2022.
The company’s capabilities complement Goldman Sachs Asset Management’s existing offerings across buffer, managed outcome and income strategies.
Goldman Sachs has also been expanding its ETF franchise through Innovator Capital Management, creating a broader options-based investment platform spanning different market environments and investor objectives.
Upon completion of the NEOS acquisition, co-founders and managing partners Troy Cates and Garrett Paolella will join Goldman Sachs Asset Management as partners.
The full NEOS organization, including its investment and client service teams, is also expected to join Goldman Sachs Asset Management.
Goldman Sachs said the combination will provide NEOS with additional scale, distribution and resources to expand into new markets while preserving the firm’s investment philosophy and brand.
The acquisition also supports Goldman Sachs’ strategy of expanding more durable revenue streams and broadening the investment products available across its wealth and asset management businesses.
Goldman Sachs Asset Management currently offers investment solutions spanning fixed income, liquidity, equities, alternatives and multi-asset strategies, along with direct indexing, separately managed accounts, active ETFs and its G-Series evergreen funds.
Goldman Sachs oversees approximately $4 trillion in assets under supervision as of June 30, 2026.
Goldman Sachs Global Banking & Markets served as financial advisor to Goldman Sachs. Wachtell, Lipton, Rosen & Katz and Willkie Farr & Gallagher served as legal counsel.
Barclays is serving as exclusive financial advisor to NEOS, while Ropes & Gray is serving as legal counsel.
KEY QUOTES:
“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.”
David Solomon, Chairman And CEO Of Goldman Sachs
“Our vision for NEOS since our founding has been to meet investors where they are, challenge conventional thinking and develop innovative investment solutions that aim to help achieve better outcomes. Every investor’s income needs, risk tolerances and objectives are unique, and we built our business with that core understanding. Our commitment to that principle is absolute.”
Garrett Paolella, Co-Founder Of NEOS Investments
“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.”
Troy Cates, Co-Founder Of NEOS Investments
