Goldman Sachs has finalised its acquisition of Innovator Capital Management, a major player in active exchange-traded funds (ETFs). The deal, valued at approximately $2 billion, significantly boosts Goldman Sachs’ presence in the rapidly expanding active ETF market. Active ETFs have gained popularity among investors due to their lower costs and adaptable strategies, particularly as returns from some passive index products have diminished.
Innovator Capital Management specialises in defined outcome ETFs, utilising exchange-traded options to safeguard investors against market downturns while setting a ceiling on potential gains to finance this protection. Goldman Sachs Asset Management oversees about 240 ETFs globally, with total ETF assets under supervision of $90 billion, the firm said.
Innovator co-founders Bruce Bond and John Southard will become advisory directors at Goldman Sachs. Additionally, Chief Investment Officer Graham Day and Head of Distribution Trevor Terrell will join as partners. Over 70 Innovator employees will transition to Goldman Sachs. Bryon Lake, Chief Transformation Officer at Goldman Sachs Asset Management, noted increasing investor interest in alternative market exposure strategies amid breaking traditional correlations.
Goldman Sachs is a leading global investment banking, securities, and investment management firm that provides a wide range of financial services to a substantial and diversified client base. Innovator Capital Management is now part of Goldman Sachs, specialising in defined outcome ETFs designed to offer downside protection and capped upside potential.
