Dec 1 (Reuters) – Goldman Sachs said on Monday it will acquire exchange-traded fund sponsor Innovator Capital Management in a cash-and-stock deal worth about $2 billion, as the Wall Street bank seeks to expand in one of the fastest-growing segments of asset management. The deal will strengthen Goldman Sachs Asset Management’s presence in the fast-growing […]
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Goldman Sachs to buy Innovator Capital in $2 billion deal
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Dec 1 (Reuters) – Goldman Sachs said on Monday it will acquire exchange-traded fund sponsor Innovator Capital Management in a cash-and-stock deal worth about $2 billion, as the Wall Street bank seeks to expand in one of the fastest-growing segments of asset management.
The deal will strengthen Goldman Sachs Asset Management’s presence in the fast-growing active ETF market.
Active funds lost ground during the equities rally driven by near-zero interest rates, as passively managed index products were sufficient to deliver strong returns.
With the end of loose monetary policy, investors are turning back to actively managed strategies, favoring a more hands-on approach over the passive investing style that has dominated the past decade.
“Active ETFs are dynamic, transformative, and have been one of the fastest-growing segments in today’s public investment landscape,” said Goldman Sachs CEO David Solomon.
(Reporting by Pritam Biswas in Bengaluru; Editing by Leroy Leo)