Goldman Sachs Completes Acquisition of NextCapital Group
NEW YORK, August 29, 2022 – The Goldman Sachs Group, Inc. (Goldman Sachs) today announced the completion of the acquisition of NextCapital Group, Inc. (NextCapital). The transaction will accelerate the expansion of Goldman Sachs’ services to the growing defined contribution (DC) retirement market through personalized managed accounts and digital advice.
NextCapital’s platform will become part of Goldman Sachs Asset Management’s Multi-Asset Solutions (MAS) business, and the company’s team of over 150 professionals has joined the firm.
NextCapital is an open-architecture digital retirement advice provider based in Chicago. Together, Goldman Sachs Asset Management and NextCapital will continue to partner with financial institutions across the United States to deliver personalized retirement planning and managed accounts to individual investors through workplace retirement plans and individual retirement accounts (IRAs).
David Solomon, Chairman and CEO of Goldman Sachs, said “This acquisition accelerates our investment in technology to build compelling client solutions in asset management. This is an area of strategic focus for us, and we are excited to welcome the talented team at NextCapital as we work to create even more innovative ways to serve the growing defined contribution market.”
“Individuals saving for retirement are confronting market volatility and higher inflation that impacts their spending needs and investment returns. Many investors want personalized planning and managed account solutions that can recalibrate asset allocations and contribution strategies to reflect changing markets and participant circumstances over time,” said Luke Sarsfield, Co-Head of Goldman Sachs Asset Management. “We look forward to combining our expertise and resources with NextCapital in the DC market as we seek to improve future plan design and participant outcomes.”
Investing in the delivery of solutions for the growing DC market is a core focus for Goldman Sachs Asset Management, supported by the broad resources and technology of Goldman Sachs. The NextCapital acquisition augments the firm’s existing asset management capabilities and workplace and wealth management solutions, providing more tools for sponsors and other clients to consider when constructing retirement programs.
“By joining Goldman Sachs, we believe we can address a challenge that has been a thorn in the side of the retirement industry for decades: the struggle to effectively prepare the majority of investors for retirement,” said John Patterson, Chief Executive Officer of NextCapital. “We strive to do this by engaging workplace participants and IRA investors in cost-effective, personalized and managed retirement plans.”
“We are committed to delivering innovative retirement solutions and implementation expertise for both DC and defined benefit plans,” said Greg Calnon, Head of MAS at Goldman Sachs Asset Management. “NextCapital brings exciting new personalization and technology capabilities and a creative spirit to our comprehensive suite of retirement solutions.”
NextCapital’s managed account platform has been powering the Goldman Sachs Workplace Retirement Solution, a retirement program for small and mid-sized businesses, since it launched in 2021.
About NextCapital Group
NextCapital is an enterprise digital advice company headquartered in Chicago. With a passion for innovation and decades of industry experience, the NextCapital team has brought disruptive financial solutions to market in an effort to help everyone retire successfully. The company partners with leading financial institutions to deliver configurable solutions tailored to the needs of investors and goals of partners. The company works with partners to personalize planning and managed accounts, customize methodology and provider roles, and in some instances serve as the 3(38) investment manager for discretionary, plan participant advice. Clients include asset managers and plan sponsors across the U.S. as well as partnerships with recordkeepers.
About Goldman Sachs
The Goldman Sachs Group, Inc. (NYSE: GS) is a leading global financial institution that delivers a broad range of financial services across investment banking, securities, investment management and consumer banking to a large and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.
About Goldman Sachs Asset Management
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs, the business delivers investment and advisory services for the world’s leading institutions, financial advisors, and individuals, drawing from a deeply connected global network and tailored expert insights across every region and market. Goldman Sachs has $2.5 trillion in assets under supervision globally as of June 30, 2022. Driven by a passion for their clients’ performance, Goldman Sachs Asset Management seeks to build long-term relationships based on conviction, sustainable outcomes, and shared success over time.
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