$2.25 billion in cash and equity is what Goldman Sachs has agreed to pay for NEOS Investments, a Westport, Connecticut-based options-based income ETF provider managing $30 billion across 19 funds, the firm said Wednesday. Adding NEOS lifts Goldman Sachs Asset Management's total ETF book from an implied $100 billion to approximately $130 billion, a level Goldman says would make it a top-eight active ETF manager. The deal is expected to close in the first quarter of 2027, pending regulatory approval, and the final payout depends on NEOS meeting certain performance and service commitments.
What the $2.25 billion buys
NEOS was founded in 2022 and is based in Westport, Connecticut. Its 19 ETFs are all built around options-based income strategies. Co-founders Troy Cates and Garrett Paolella are expected to join Goldman Sachs Asset Management as partners after the close, and the broader NEOS workforce covering investment and client service functions is set to transfer to Goldman.
The $2.25 billion is a ceiling tied to performance and service targets. The realized consideration could fall short.
Two acquisitions, one options franchise
This deal follows Goldman's approximately $2 billion purchase of Innovator Capital Management, a defined-outcome ETF specialist, roughly one year prior.
| Acquisition | Specialty | Reported price |
|---|---|---|
| Innovator Capital Management | Defined-outcome ETFs | ~$2 billion |
| NEOS Investments (Q1 2027 close expected) | Options-based income ETFs | Up to $2.25 billion |
Goldman CEO David Solomon said NEOS's investment discipline is complementary to the firm's existing buffer and managed outcome strategies. Marc Nachmann, who oversees Goldman's asset management division, described active ETFs to Bloomberg as "a fast growing space in the asset-management business."
Derivative income ETF market
Industry-wide, derivative income ETFs held approximately $180 billion in assets and have posted a compound annual growth rate of more than 70% since 2021, according to Morningstar data cited by Goldman Sachs.
Goldman's asset and wealth management division reported $4.04 trillion in assets under supervision at the end of the second quarter of 2026, generating $4.60 billion in revenue for the quarter, a 20% year-over-year gain. Firm-wide assets under supervision stood at approximately $4 trillion as of June 30, 2026.
Goldman Sachs Global Banking & Markets advised Goldman on the transaction; Wachtell, Lipton, Rosen & Katz and Willkie Farr & Gallagher LLP served as Goldman's legal counsel. Barclays was exclusive financial advisor to NEOS, with Ropes & Gray LLP as NEOS's legal counsel.