Goldman Sachs agrees $2.25bn acquisition of NEOS Investments

November 2026 | DEALFRONT | MERGERS & ACQUISITIONS

Financier Worldwide Magazine

November 2026 Issue

Goldman Sachs has agreed to acquire exchange-traded fund (ETF) platform NEOS Investments in a transaction valued at up to $2.25bn, strengthening its position in the growing market for actively managed income-focused ETFs.

The deal comprises a mix of cash and equity and includes performance and service-related conditions that could affect the final consideration paid. The transaction is expected to complete in the first quarter of 2027, subject to regulatory approvals and customary closing requirements.

Once the acquisition closes, NEOS co-founders and managing partners Troy Cates and Garrett Paolella will join Goldman Sachs Asset Management as partners. The broader NEOS organisation, including investment professionals and client service personnel, is also expected to become part of Goldman Sachs Asset Management.

Founded in 2022, NEOS has emerged as one of the fastest-growing ETF providers in the US market. The firm managed approximately $30bn in assets across 19 options-based income ETFs as of 30 June 2026. Its investment strategies are designed to deliver income, diversification and tax efficiency through options-based approaches.

The acquisition forms part of Goldman Sachs Asset Management’s effort to expand its range of derivative-based ETF strategies. The firm believes demand for active ETF products continues to grow as investors seek solutions capable of generating income while helping to manage market volatility.

“As investor demand for active ETFs grows, Neos’ disciplined investment approach is highly complementary to our capabilities across buffer, managed outcome and income strategies,” said David Solomon, chairman and chief executive of Goldman Sachs. “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,” he added.

“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,” said Mr Paolella. “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.”

“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,” said Mr Cates. “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.”

According to Morningstar data cited by Goldman Sachs, the transaction will position Goldman Sachs Asset Management as the world’s eighth-largest active ETF manager upon completion. The acquisition is also expected to enhance NEOS’ reach and support further product development.

NEOS has built its reputation through options-based ETF strategies aimed at generating monthly income for investors. According to information published by the firm, its flagship S&P 500 High Income ETF delivered a return of roughly 19 percent during the 12 months to June 2026.

The acquisition marks Goldman Sachs’ second significant ETF-related transaction this year. Earlier in 2026, the firm completed the acquisition of Innovator Capital Management in a deal valued at around $2bn. Together, the acquisitions expand Goldman Sachs’ footprint in options-based and outcome-oriented ETF strategies.

Asset managers are increasingly favouring income-generating products that help limit losses during market volatility.

Goldman Sachs has highlighted the appeal of derivative-income ETFs as tools that can help investors manage risk and navigate interest-rate volatility within a transparent and tax-efficient investment structure. The firm noted that the derivative-income ETF segment has recorded compound annual growth of more than 70 percent since 2021, making it one of the fastest-growing areas of the ETF market.

Richard Summerfield