- Goldman Sachs Asset Management is buying retirement planning and digital advice company NextCapital.
- Goldman Sachs will integrate NextCapital’s platform into its Multi-Asset Solutions business, a group that offers custom, multi-asset portfolios.
- Terms of the deal, which is expected to close in the latter half of this year, were not disclosed.
Goldman Sachs Asset Management has agreed to acquire retirement planning and digital advice company NextCapital in a transaction that is expected to close in the second half of this year.
Terms of the deal, which ranks among the top five asset management deals Goldman Sachs has ever done, were not disclosed.
Chicago-based NextCapital offers automated, digital retirement advice to help banks deliver personalized, customizable retirement planning and managed accounts through their clients’ workplace retirement plans and IRAs. Goldman Sachs, which already leverages NextCapital’s managed account platform to power its retirement program for SMBs, anticipates the purchase will expand its services by adding personalized, managed accounts, and digital advice.
By combining the two companies, Goldman Sachs will be able to provide services to large retirement plans while working with platform clients. As Goldman Sachs CEO David Solomon explained, “This acquisition furthers our strategic objective of building compelling client solutions in asset management and accelerating our investment in technology to serve the growing defined contribution market.”
After the deal closes, Goldman Sachs will integrate NextCapital’s platform into its Multi-Asset Solutions business, a group with approximately $220 billion in assets under supervision that offers custom, multi-asset portfolios. The NextCapital team will continue to operate from offices in Chicago.
Founded in 2014, NextCapital has raised $82 million. “Our vision for the future of the retirement savings market is aligned with the team at Goldman Sachs: technology that can create a differentiated experience combined with a strong culture and focus on clients forms a powerful offering for our clients and the individuals they serve,” said NextCapital CEO John Patterson. “We can leverage the resources of a global financial services firm to continue to scale our platform and offer it to new third party institutional clients and Goldman Sachs’ broader wealth management organization.”