Wall Street investment bank Goldman Sachs announced Thursday that it has finalized its purchase of Innovator Capital Management, an active exchange-traded fund company, marking a significant expansion into the rapidly growing active ETF market.
Active ETFs represent one of the most rapidly expanding sectors in investment management, drawing investors seeking cost-effective options and adaptable investment approaches during periods when traditional passive index funds have underperformed.
The financial giant first revealed its intention to purchase Innovator Capital in December, acquiring a company that oversees 171 ETFs worth approximately $31 billion in assets through a transaction valued at roughly $2 billion.
“With this acquisition, we have taken a transformative step in our commitment to provide sophisticated investment solutions that are designed to deliver specific outcomes for investors through market cycles,” stated Goldman Sachs Chief Executive Officer David Solomon.
As part of the transaction, Innovator’s founding partners Bruce Bond and John Southard will assume roles as advisory directors at Goldman Sachs, according to the company’s announcement. Additionally, Chief Investment Officer Graham Day and Head of Distribution Trevor Terrell will become partners at the firm.
The acquisition will bring more than 70 Innovator staff members into Goldman Sachs, the company reported.
Goldman Sachs Asset Management now manages approximately 240 ETFs worldwide, bringing the firm’s total ETF assets under management to $90 billion, according to the announcement.
