Goldman Sachs has agreed to acquire NEOS Investments for up to $2.25 billion, expanding its lineup of options-based funds as investors increasingly use active ETFs to generate income and manage market risk. The consideration will include cash and equity and is contingent partly on performance and service commitments.
NEOS managed $30 billion across 19 systematic, options-based income ETFs as of June 30. Its strategies use derivatives alongside equity, bond or commodity exposure to seek recurring income and potentially reduce portfolio volatility.
“As investor demand for active ETFs grows, NEOS’ disciplined investment approach is highly complementary to our capabilities across buffer, managed outcome and income strategies,” said David Solomon, chairman and CEO of Goldman Sachs.
Derivative-income ETFs have grown to approximately $180 billion in industry assets, posting a compound annual growth rate exceeding 70% since 2021, according to Morningstar data cited by Goldman.
The transaction follows Goldman’s acquisition of Innovator Capital Management in December 2025, a provider of defined-outcome ETFs that use options to establish predetermined downside buffers and upside limits.
Following the NEOS closing, Goldman Sachs Asset Management, Innovator and NEOS will oversee more than $130 billion in total ETF assets. Their combined $80 billion active ETF business would rank as the industry’s eighth largest, according to Morningstar.
Goldman has been expanding its asset management operations to generate more recurring revenue alongside its trading and investment banking businesses. Its asset and wealth management division generated $4.6 billion of net revenue during the second quarter, up 20% from a year earlier.
NEOS co-founders and managing partners Troy Cates and Garrett Paolella will join Goldman Sachs Asset Management as partners. The rest of NEOS’ investment and client-service employees are also expected to join the company.
The transaction is expected to close during the first quarter of 2027.
Goldman Sachs was advised by Goldman Sachs Global Banking & Markets as financial advisor and Wachtell, Lipton, Rosen & Katz and Willkie Farr & Gallagher LLP as legal counsel. Barclays is serving as exclusive financial advisor and Ropes & Gray LLP is serving as legal counsel to NEOS.
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