Multi-Billion Dollar Deal Adds $30 Billion in Active Income ETFs, Positioning Goldman Sachs Among the Top Eight Active ETF Providers
The Goldman Sachs Group, Inc. (NYSE: GS) announced today that it has entered into a definitive agreement to acquire NEOS Investments (NEOS), a specialized provider of systematic options-based income exchange-traded funds (ETFs). As of June 30, 2026, NEOS manages $30 billion in assets across 19 options-based income ETFs, representing one of the fastest-growing platforms in the sector.
This acquisition will seamlessly integrate NEOS’ active income ETFs with Goldman Sachs Asset Management’s existing $40 billion in income and outcome-oriented options-based solutions. Combined with Innovator Capital Management, the broader enterprise will oversee more than $130 billion in ETF assets under supervision (AUS), positioning Goldman Sachs Asset Management as a top eight active ETF provider globally.
Accelerating Demand for Derivative Income Strategies
The market for derivative income ETFs has experienced explosive growth, expanding to approximately $180 billion in assets under management with a compound annual growth rate (CAGR) exceeding 70% since 2021, according to Morningstar data. Investors increasingly look to modern, transparent, and tax-efficient ETF structures to generate attractive income, mitigate interest rate volatility, and manage portfolio risk. Since launching its flagship options-based suite in 2022, NEOS has established itself as an industry pioneer and market leader in this asset class.
David Solomon, Chairman and CEO of Goldman Sachs, emphasized the strategic alignment of the transaction:
“As investor demand for active ETFs grows, NEOS’ disciplined investment approach is highly complementary to our capabilities across buffer, managed outcome and income strategies. Together, will give investors a diverse toolkit for different market environments. NEOS’ innovative ETF solutions and intuitive financial education programs have helped them build a strong market presence across a diverse investor base and this acquisition is an excellent strategic and cultural fit.”
Leadership Integration and Transaction Terms
Upon the completion of the acquisition, expected in the first quarter of 2027 subject to regulatory approvals and customary closing conditions, NEOS Co-Founders and Managing Partners Troy Cates and Garrett Paolella will join Goldman Sachs Asset Management as Partners, bringing decades of options-based investing expertise. The entire NEOS team, spanning investment, research, and client service functions, is expected to transition to Goldman Sachs.
Reflecting on the partnership, Garrett Paolella, Co-Founder of NEOS, stated:
“Our vision for NEOS since our founding has been to meet investors where they are, challenge conventional thinking and develop innovative investment solutions that aim to help achieve better outcomes. Every investor’s income needs, risk tolerances and objectives are unique, and we built our business with that core understanding. Our commitment to that principle is absolute.”
Troy Cates, Co-Founder of NEOS, added:
“As we think about the next chapter for our business, Goldman Sachs Asset Management is a partner that shares our commitment to investment excellence and innovation. Together, we’ll combine NEOS’ entrepreneurial spirit with Goldman Sachs’ scale, expertise and resources to expand the reach of NEOS’ solutions and deliver even greater value for our investors.”
The transaction consideration is valued at up to $2.25 billion in cash and equity, contingent upon the achievement of specific performance and service milestones. Goldman Sachs Global Banking & Markets acted as financial advisor, alongside legal counsels Wachtell, Lipton, Rosen & Katz and Willkie Farr & Gallagher LLP.
