Goldman to buy Innovator Capital Management for $2B

Core Viewpoint - Goldman Sachs is acquiring Innovator Capital Management for $2 billion, which will add $28 billion in assets to Goldman's management portfolio [1][2]. Group 1: Acquisition Details - The acquisition will significantly enhance Goldman's exchange-traded fund (ETF) offerings, incorporating 159 defined outcome ETFs [2]. - The transaction is expected to close in the second quarter of 2026, pending regulatory approval and other customary conditions [3]. Group 2: Market Context - Innovator Capital Management is recognized for pioneering defined outcome ETFs, which utilize options to provide specific ranges of returns and losses [4]. - The defined outcome ETF market has seen substantial growth, increasing from $183 million in assets under management in 2018 to nearly $27 billion by August 2023 [4]. Group 3: Growth Potential - Defined outcome ETFs have experienced a 66% compound annual growth rate since 2020, highlighting their rapid adoption in the investment landscape [5]. - Goldman Sachs views defined outcome ETFs as a crucial element of the expanding active ETF market, aimed at delivering innovative structured strategies to investors [5]. Group 4: Leadership and Integration - Innovator's CEO Bruce Bond and other key executives will remain with Goldman Sachs Asset Management post-acquisition, ensuring continuity in leadership [5]. - The integration will involve over 60 Innovator employees joining Goldman's Third-Party Wealth and ETF teams [5]. Group 5: Competitive Position - Following the acquisition, Goldman Sachs Asset Management will rank among the top-10 active ETF providers globally, managing over 215 ETF strategies with total assets exceeding $75 billion [6].