Goldman Sachs Asset Management has entered into an agreement to acquire managed account provider NextCapital Group for an undisclosed amount.
The transaction is expected to close in the second half of 2022 pending regulatory and other approvals, Goldman Sachs said in a news release Tuesday. .
While Goldman Sachs would not say how much it will pay for the acquisition, it disclosed through a spokeswoman that the deal is one of the firm's five largest asset management deals.
David Solomon, chairman and CEO of parent company Goldman Sachs Group, said in the news release that the deal will expand the firm's services to the defined contribution retirement market through the personalized managed accounts and digital advice that NextCapital provides.
"This acquisition furthers our strategic objective of building compelling client solutions in asset management and accelerating our investment in technology to serve the growing defined contribution market," Mr. Solomon said.
Goldman Sachs also said the deal is a way to augment existing capabilities throughout Goldman Sachs' asset and wealth management businesses, which it says have total defined benefit and defined contribution assets under supervision of about $350 billion.
NextCapital will provide "another tool for sponsors and other clients to consider when constructing a retirement program," the news release said.
NextCapital is a digital retirement advice provider that offers retirement planning and managed accounts through workplace retirement plans and individual retirement accounts. Its managed account platform currently powers the Goldman Sachs Workplace Retirement Solution, a retirement program for small and midsize businesses.
After the deal closes, NextCapital's platform is expected to become part of the multiasset solutions business of Goldman Sachs Asset Management.
