BY Richard Summerfield
The Goldman Sachs group has agreed to acquire NN Investment Partners from NN Group N.V. for around $1.98bn. The transaction is expected to close by the end of the first quarter of 2022, subject to regulatory and other approvals and conditions.
The deal will essentially double Goldman Sach’s European assets under supervision to about $600bn and will bring “great cross-selling opportunities” for Goldman Sachs Asset Management, according to Julian Salisbury, head of Goldman Sachs Asset Management.
“This acquisition allows us to accelerate our growth strategy and broaden our asset management platform,” said Mr Salisbury. “NN Investment Partners offers a leading European client franchise and an extension of our strength in insurance asset management. Across NN Investment Partners’ offerings they have been successful in integrating sustainability which mirrors our own level of ambition to put responsible investing and stewardship at the heart of our business.”
The deal also enhances Goldman Sachs’ global position as it boosts the firm’s fund management and distribution with $355bn in assets under management and about $70bn in assets under advisement. The acquisition of NNIP is the biggest deal by Goldman Sachs since David M. Solomon became chief executive in 2018.
Under the terms of the deal, NNIP’s 900 employees will join Goldman Sachs and the Netherlands will become “a significant location” in the firm’s European operations. Furthermore, the two companies will enter a 10-year strategic partnership under which Goldman will provide asset management services to NN Group on an investment portfolio of $190bn, the companies said in a statement.
“NN Group and NN Investment Partners have a longstanding and successful shared history,” said David Knibbe, chief executive of NN Group. “We value this strong and constructive relationship that we have and we look forward to further building on it in a new form. This transaction brings together two international asset managers, each with many decades of investment experience. We have found a strong and professional partner in Goldman Sachs, providing an environment in which our NN Investment Partners colleagues can continue to thrive, while the combined investment expertise and scale will enhance the service offering to NN Investment Partners’ clients, including NN Group.
“This transaction will also give NN Group greater optionality to develop a broader range of asset management propositions for our customers.,” he continued. “Our approach and ambitions around ESG will remain unchanged and Goldman Sachs shares our commitment to responsible investing.”
News: Goldman Sachs to buy Dutch asset manager NNIP for around $2 billion