Goldman Sachs Strikes $2.25 Billion Deal to Acquire NEOS
Key Facts
Goldman Sachs announced on August 12, 2026, that it had agreed to acquire NEOS Investments, a specialist in exchange-traded funds that generate income through options strategies. Consideration is worth up to $2.25 billion in cash and stock, subject to specified performance and/or service obligations. The deal has not yet closed; the bank expects it to be completed in the first quarter of 2027, subject to regulatory approvals and customary closing conditions. The move will expand Goldman’s active ETF business, particularly products that target income generation using options. According to the bank, NEOS managed $30 billion across 19 funds as of June 30, 2026.
Goldman said the acquisition will add NEOS’s $30 billion in assets to the bank’s existing $40 billion in options-based income and outcome solutions. Based on figures reported by the bank as of June 30, 2026, the combined platform will have $80 billion in active ETFs within a global platform totaling $130 billion. The bank estimated, based on Morningstar’s classification, that the combination would make the platform the eighth-largest active ETF manager on that date. The figures measure the scale of the business the bank is seeking to build, while the deal remains subject to its conditions. Chief Executive David Solomon said NEOS’s approach complements Goldman’s capabilities in hedged, outcome-oriented and income strategies, adding: "Together, we will offer investors a range of tools for different market environments."
NEOS funds use options-based income strategies and seek to provide high monthly income, tax efficiency and diversification, according to Goldman’s announcement. The company launched its flagship options income fund suite in 2022, the same year it was founded. The announcement does not frame the deal’s objective as delivering high returns outright, but focuses on expanding options-based income and outcome solutions. Across the industry, derivatives income funds had about $180 billion in assets when the deal was announced, according to Morningstar as cited by Goldman. The category has grown at a compound annual rate of more than 70% since 2021, placing the deal in a market that has expanded rapidly in recent years.
The deal puts Goldman’s expansion in the context of broader competition for active and specialist ETFs. Bloomberg Law described the deal in August as the bank’s second major acquisition of a specialist ETF manager in less than a year, following its purchase of Innovator Capital Management. The report said the Innovator deal was valued at about $2 billion. Goldman’s announcement filed with the U.S. Securities and Exchange Commission also said the acquisitions of NEOS and Innovator, together with the bank’s asset management platform, would create a sizable options-based ETF business. The moves reflect Goldman’s effort to broaden its active fund offerings through acquisitions.
Under the proxy document, NEOS shareholders must vote on new advisory agreements and elect nominees to the board of trustees, but they will not vote on the deal itself. The document set August 24, 2026, as the record date for eligible shareholders and called a special meeting for November 3, 2026, at 9:00 a.m. U.S. Eastern Time. Proceeding with the deal requires approval from shareholders representing a specified minimum of the revenue received by the adviser, election of the nominees, regulatory approvals and other conditions. The document said NEOS will continue providing services to the funds under the same terms and management fees, with no increase in the total fees paid by the funds. Portfolio managers and investment advisory staff are also expected to continue managing the funds without interruption after closing, provided they choose to remain with NEOS.
The proxy document said Goldman intends to allocate additional resources to NEOS and its funds, and that joining a larger institution could expand distribution capabilities and create growth opportunities. It cautioned, however, that these potential benefits may not materialize. After the deal closes, NEOS co-founders and managing partners Troy Cates and Garrett Paolella are expected to join Goldman Sachs Asset Management as partners. The expected closing date remains the first quarter of 2027, subject to regulatory approvals and customary closing conditions. Until then, the announced deal remains subject to completion of the approval and closing steps.