The deal, which is expected to close in the second half of the year, “will accelerate Goldman Sachs’ expansion of services into the growing defined contribution market through personalized managed accounts and digital advice,” the statement said. hurry.
Although the terms of the deal have not been released, the Financial Times says it is one of the top five asset management deals Goldman has completed.
NextCapital works with financial institutions to provide retirement planning and managed accounts through workplace retirement programs and Individual Retirement Accounts (IRAs).
The company says its platform enables its customers – which include asset managers, plan sponsors, advisors and accountants – to meet demand from individual investors for more digitization, income solutions from retirement, information and personalized strategies.
“Employers seek to provide their employees with tailored solutions and customizable advice that can better meet individual savings and investment needs to help improve retirement savings outcomes,” said Luke Sarsfield. , co-head of Goldman Sachs Asset Management. “We believe personalization is the future of retirement savings and will drive the next wave of innovative retirement solutions.”
Sarsfield added that with the help of NextCapital, Goldman will continue to invest in technology that helps retirement investors and “support the growing $10 trillion DC market and the even larger segment of the market.” ‘IRA’.
See also: Goldman Sachs to buy fintech lender GreenSky in $2.24 billion equity deal
Upon completion of the acquisition, NextCapital’s platform is expected to become part of Goldman Sachs Asset Management’s Multi-Asset Solutions (MAS) business, while its team will continue to operate from the company’s Chicago headquarters.
Last year, Goldman Sachs announced plans to buy FinTech lending firm GreenSky in an all-stock deal worth $2.24 billion. Founded in 2006, GreenSky funds home improvement loan options for approximately 4 million customers and has funded over $30 billion in business improvements for the healthcare, retail and e-commerce sectors.