Goldman Sachs Asset Management has agreed to acquire the strategic partnership portion of Verus Investors' outsourced CIO business, said GSAM spokesman Andrew Williams.
The transaction is expected to close by mid-year 2017. Terms were not disclosed.
The strategic partnership business that Verus is selling to GSAM serves a small number of large and complex institutional clients, said Verus spokeswoman Margie Lane. The business represents about $21 billion in assets under supervision as of Dec. 31. It will become a part of GSAM's outsourcing solutions business, which provides asset allocation, portfolio construction and risk management.
Verus will retain its core business lines including the outsourced CIO business not being transferred to GSAM, traditional consulting, risk management and private markets consulting. Verus Advisory will retain its midmarket OCIO practice.
After the transaction closes, Verus will have more than 146 non-discretionary clients with total assets under advisement of about $333 billion. Ms. Lane did not have the breakdown of the portion that is OCIO by press time.
Jeffrey Scott, Verus Investors' chief investment officer, and several team members will join GSAM. They will be based in Goldman Sachs' offices in New York and Seattle.
Joining Mr. Scott at GSAM will be Omer Tareen, deputy chief investment officer; managing director Scott Day; and supporting portfolio management staff and analysts.
Goldman Sachs Asset Management had $1.38 trillion in assets under supervision as of Dec. 31.