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Goldman Sachs to acquire ETF provider Neos in $2.3 billion deal
['Sridhar Natarajan', 'Todd Gillespie', 'Senior Market Intelligence Analyst', 'Staff Writer', 'Tech Reporter', 'Technology Reporter', 'Chief Correspondent']
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Goldman Sachs Group Inc. will pay as much as $2.25 billion to buy Neos Investments, expanding its asset manager's reach in the actively managed exchange-traded fund market.
The relatively new upstart is behind nearly two dozen options-based income ETFs commanding some $32 billion in assets, according to data compiled by Bloomberg.
Goldman has been pushing further into the ETF universe in recent months, striking a deal late last year to buy Innovator Capital Management for $2 billion.
The latest acquisition will push Goldman's ETF assets to about $130 billion.
Troy Cates and Garrett Paolella, Neos co-founders, will become partners at Goldman Sachs Asset Management after the deal is completed.