Goldman Sachs Group agreed to acquire a 100% stake in NN Investment Partners, the money management arm of insurer NN Group, in a €1.6 billion ($1.9 billion) deal, spokesmen for both companies confirmed.
The all-cash deal will boost Goldman Sachs’ fund management and distribution to institutional and retail investors with $355 billion in assets under management and about $70 billion in assets under advisement.
The acquisition will help Goldman Sachs Asset Management grow its existing European equity, investment-grade credit, sustainable and impact equity, and green bond offerings.
The deal is set to close by the end of the first quarter of 2022, when 900 of NN IP's employees will join Goldman, while the firm will be integrated into Goldman Sachs Asset Management.
As part of the agreement, Goldman Sachs Asset Management will manage around $190 billion in assets for NN Group.
"NN Investment Partners offers a leading European client franchise and an extension of our strength in insurance asset management. Across NN Investment Partners' offerings they have been successful in integrating sustainability, which mirrors our own level of ambition to put responsible investing and stewardship at the heart of our business," said David M. Solomon, chairman and CEO of Goldman Sachs, in a news release Thursday.
David Knibbe, CEO of NN Group, added in the news release: "We have found a strong and professional partner in Goldman Sachs, providing an environment in which our NN Investment Partners colleagues can continue to thrive, while the combined investment expertise and scale will enhance the service offering to NN Investment Partners' clients, including NN Group."
"This transaction will also give NN Group greater optionality to develop a broader range of asset management propositions for our customers," Mr. Knibbe added.
Financial adviser Goldman Sachs & Co. and law firms Sullivan & Cromwell and Freshfields Bruckhaus Deringer advised Goldman Sachs on the deal.
Financial adviser J.P. Morgan Securities and law firm De Brauw Blackstone Westbroek advised NN Group.
