Goldman Sachs Buys NEOS Investments for Up to $2.25 Billion

Goldman Sachs Asset Management is expanding its options-based ETF lineup by acquiring NEOS Investments in a deal worth up to $2.25 billion, according to a press release from Goldman Sachs. The acquisition adds $30 billion in assets under management across NEOS' 19 options-based income ETFs to Goldman's existing $40 billion in income and outcome-oriented options-based ETF solutions.

The transaction is expected to close in the first quarter of 2027, subject to regulatory approval and other customary closing conditions. The deal underscores the growing popularity of derivative income ETFs, which have swelled to approximately $180 billion in assets under management since 2021, according to Morningstar.

NEOS was founded in 2022 by Garrett Paolella and Troy Cates, who will join Goldman Sachs Asset Management as partners upon closing. The full NEOS team is expected to come aboard, giving the firm the scale and resources to strengthen its brand and expand into new markets while preserving its distinct investment philosophy.

David Solomon, chairman and CEO of Goldman Sachs, said in a statement that the acquisition will give investors a diverse toolkit for different market environments. Paolella added that every investor's income needs, risk tolerances, and objectives are unique, and NEOS' data-driven ETFs aim to deliver high monthly income, tax efficiency, and diversification.