Goldman Sachs Snaps Up Neos Investments for $2.25 Billion

Goldman Sachs Group Inc. is expanding its presence in the actively managed exchange-traded fund market through a major acquisition.

The Wall Street giant will pay up to $2.25 billion for Neos Investments, a fast-growing ETF issuer behind nearly two dozen options-based income ETFs that collectively manage some $32 billion in assets, according to data compiled by Bloomberg.

Neos' offerings include actively managed exchange-traded funds (ETFs), which allow investors to track specific market indexes or sectors while also providing the flexibility to adjust their investment strategy as market conditions change. The deal is expected to add significant heft to Goldman's asset management arm, which oversees a range of financial products.

According to Marc Nachmann, who oversees Goldman's money-management arm, the acquisition will bring Neos' innovative approach and expertise in options-based income ETFs to Goldman's roster of offerings. The cash-and-equity deal is expected to close soon, pending regulatory approval.