Goldman Sachs announced Monday that it signed an agreement to acquire ETF firm Innovator Capital Management, based in Wheaton, Illinois, for about $2 billion in cash and equity, subject to the achievement of unspecified performance targets. The transaction is expected to close in the second quarter of 2026.
Innovator managed $28 billion of assets under supervision (AUS) across 159 defined outcome ETFs as of Sept. 30, using income, targeted buffer and growth strategies, the firms said. Goldman Sachs said that the transaction will expand the currently available and planned future ETFs of Goldman Sachs Asset Management.
“Active ETFs are dynamic, transformative, and have been one of the fastest-growing segments in today’s public investment landscape,” David Solomon, CEO and Chairman of Goldman Sachs, said in the release. “By acquiring Innovator, Goldman Sachs will expand access to modern, world-class investment products investor portfolios.”
He added, “Innovator’s reputation for innovation and leadership in defined outcome solutions complements our mission to enhance the client experience with sophisticated strategies that seek to deliver targeted, defined outcomes for investors.”
Rapid Active ETF Growth
Global active ETF assets under management (AUM) are now estimated to total $1.6 trillion, growing at a 47% compound annual growth rate (CAGR) since 2020 as investors increasingly access public markets through ETFs, the firms said, citing Morningstar data.
After growing at 66% CAGR since 2020, defined outcome ETFs are a significant part of active ETF growth, Goldman Sachs and Innovator said, again citing Morningstar data.
“This transaction is a pivotal milestone for our business,” according to Bruce Bond, CEO and Co-Founder of Innovator. “Goldman Sachs has a long history of discerning emerging trends and important directional shifts within the asset management industry.”
He added, “We are excited to deliver world-class investment solutions to clients within the ETF framework and expand our business in this high-growth, sector-leading category. These synergies, among numerous others, make Goldman Sachs an ideal partner for us.”
Top 10 Active ETF Provider
As of Sept. 30, Goldman Sachs Asset Management and Innovator managed over 215 ETF strategies combined, representing more than $75 billion in total AUS, which makes Goldman Sachs a top 10 active ETF provider, they said, citing Morningstar data.
The acquisition is part of the Goldman Sachs division’s strategy to widen its leadership in what it defines as “innovative and growing investment categories” and “deliver attractive investment performance and service to its clients,” according to the firm.
As part of the acquisition, Innovator executives Bond; John Southard, Co-Founder and President; Graham Day, Executive Vice President and Chief Investment Officer; and Trevor Terrell, Senior Vice President and Head of Distribution, will join Goldman Sachs Asset Management, according to the firms.
Innovator’s more than 60 employees are expected to join the Goldman Sachs Asset Management Third-Party Wealth and ETF teams. Goldman Sachs Asset Management will wholly own Innovator and the investment management and service providers will stay the same, according to the firms.
Goldman Sachs was advised by Goldman Sachs Global Banking and Markets as financial advisor and Wachtell, Lipton, Rosen & Katz and Willkie Farr & Gallagher as legal counsel, it said.
Innovator was advised by Oppenheimer & Co. as financial advisor and Vedder Price as legal counsel.
Jeff Berman, Contributing Editor and Reporter at Wealth Solutions Report, can be reached at jeff.berman@wealthsolutionsreport.com.
