On Monday, Goldman Sachs announced its intention to acquire Innovator Capital Management, a company known for its defined-outcome ETFs, for around $2 billion. This move is part of Goldman Sachs' effort to strengthen its asset management division.
The acquisition, which is anticipated to be completed in the second quarter of 2026, will allow Goldman Sachs to expand its offerings in the rapidly growing field of defined-outcome ETFs—a niche in the investment market known for using various contracts, including options, to manage downside risks and achieve targeted gains over specific periods. As of September 30, Innovator managed $28 billion across 159 ETFs.
David Solomon, CEO of Goldman Sachs, expressed his enthusiasm about the acquisition in a news release, stating, "Active ETFs are dynamic, transformative, and 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."
This deal is part of Goldman Sachs' broader strategy to prioritize asset and wealth management, following a strategic shift away from consumer banking. Earlier this year, the firm announced a $1 billion investment in T. Rowe Price in September and acquired Industry Ventures, a venture capital investor, in October to enhance its alternative investments platform.
Goldman Sachs confirmed that once the deal is finalized, Innovator's team of over 60 employees will become part of the bank's asset management division.