BY Richard Summerfield
Goldman Sachs has agreed to acquire Innovator Capital Management, a provider of defined-outcome exchange-traded funds (ETFs) in a cash and stock deal worth around $2bn. The deal marks Goldman’s latest attempt to bolster its asset management division.
According to Goldman, the acquisition, which is expected to close in the second quarter of 2026, will boost its ETF offerings in a fast-growing corner of the investing world. Goldman notes that the acquisition strategically expands the firm’s more durable revenue and reinforces its commitment to offering institutional and individual investors comprehensive solutions.
Upon completion of the deal, Innovator’s 60-plus employees will join Goldman’s asset management division. Bruce Bond, co-founder and chief executive of Innovator, along with other key executives, will join Goldman Sachs Asset Management.
“Active ETFs are dynamic, transformative, and have been one of the fastest-growing segments in today’s public investment landscape,” said David Solomon, chairman and chief executive of Goldman Sachs. “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.”
“This transaction is a pivotal milestone for our business,” said Mr Bond. “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.”
According to a statement announcing the deal, citing data by Morningstar, global active ETF assets under management are at $1.6 trillion, growing at a 47 percent compound annual growth rate (CAGR) since 2020 as investors increasingly access public markets through the ETF wrapper.
Having grown at 66 percent CAGR since 20203, defined outcome ETFs are a key component of the rapidly growing active ETF market, driven by the objective to deliver innovative structured strategies in accessible formats. Investors are increasingly using defined outcome ETFs to add a broad and customisable range of objectives to their portfolios that meet their risk control needs and performance objectives.
Innovator has been led by Mr Bond since he co-founded the firm with John Southard in 2017. The firm launched the first defined-outcome ETFs in 2018, and is currently the second-largest provider of buffers behind asset manager First Trust.
Goldman has made a series of deals in the past three months, including the acquisition of venture capital investor Industry Ventures and a $1bn investment in T. Rowe Price Group Inc.
News: Goldman Sachs to buy ETF sponsor Innovator in $2 billion cash-and-stock deal