Key Takeaways
- • Goldman Sachs will acquire NEOS Investments for up to $2.25 billion in a cash-and-equity transaction, expanding its actively managed ETF platform to approximately $130 billion in assets under management.
- • The deal adds nearly two dozen options-based income ETFs commanding $32 billion in assets, capitalizing on strong investor demand for high-yielding, monthly-income-paying strategies that have attracted significant inflows since NEOS's 2022 founding.
- • NEOS co-founders Troy Cates and Garrett Paolella will become partners at Goldman Sachs Asset Management post-close, with the full NEOS team expected to join Goldman's business.
- • This acquisition marks Goldman's second major ETF platform consolidation in less than a year, following its $2 billion purchase of Innovator Capital Management in late 2025, positioning the firm as a major player in both defined-outcome and options-based income ETF strategies.
- • NEOS's flagship options-based funds have delivered double-digit returns with favorable tax treatment optimization, making the acquisition strategically valuable as active ETFs represent one of the fastest-growing segments in asset management.
Summary
Goldman Sachs has agreed to acquire NEOS Investments for up to $2.25 billion, significantly accelerating the Wall Street giant's expansion into the rapidly growing active ETF market. The transaction, structured as a cash-and-equity deal, will bring Goldman's total ETF assets to approximately $130 billion, cementing its position among major ETF issuers. According to Marc Nachmann, who oversees Goldman Sachs Asset Management, the acquisition reflects the firm's commitment to capturing growth in what he described as "a fast growing space in the asset-management business."
NEOS operates a portfolio of nearly two dozen options-based income ETFs managing approximately $32 billion in assets. Founded in 2022, the Westport, Connecticut-based firm has experienced substantial growth by packaging complex, institutional-level strategies for broader investor accessibility. The firm's flagship offerings have proven particularly attractive to retail and institutional investors seeking monthly income distributions, with several funds generating double-digit returns. NEOS has also differentiated itself through tax-optimization strategies designed to enhance after-tax returns for investors.
The NEOS acquisition represents Goldman's second major ETF platform acquisition in under a year. In late 2025, Goldman purchased Innovator Capital Management for $2 billion, gaining control of over 170 defined-outcome ETFs. Together, these transactions demonstrate a deliberate strategy to establish comprehensive coverage across the active ETF landscape—specifically combining defined-outcome structures with options-based income strategies at a time when investors increasingly favor actively managed alternatives to traditional passive index funds.
Following the transaction's completion, NEOS co-founders Troy Cates and Garrett Paolella will become partners at Goldman Sachs Asset Management, and the entire NEOS team is expected to join the business. This retention structure signals Goldman's intention to preserve the operational independence and investment expertise that have driven NEOS's rapid growth trajectory.
The deal underscores sustained institutional appetite for income-generating ETF strategies and reflects the broader shift toward active management within the ETF ecosystem, where product innovation and yield optimization have become competitive differentiators.
NEOS operates a portfolio of nearly two dozen options-based income ETFs managing approximately $32 billion in assets. Founded in 2022, the Westport, Connecticut-based firm has experienced substantial growth by packaging complex, institutional-level strategies for broader investor accessibility. The firm's flagship offerings have proven particularly attractive to retail and institutional investors seeking monthly income distributions, with several funds generating double-digit returns. NEOS has also differentiated itself through tax-optimization strategies designed to enhance after-tax returns for investors.
The NEOS acquisition represents Goldman's second major ETF platform acquisition in under a year. In late 2025, Goldman purchased Innovator Capital Management for $2 billion, gaining control of over 170 defined-outcome ETFs. Together, these transactions demonstrate a deliberate strategy to establish comprehensive coverage across the active ETF landscape—specifically combining defined-outcome structures with options-based income strategies at a time when investors increasingly favor actively managed alternatives to traditional passive index funds.
Following the transaction's completion, NEOS co-founders Troy Cates and Garrett Paolella will become partners at Goldman Sachs Asset Management, and the entire NEOS team is expected to join the business. This retention structure signals Goldman's intention to preserve the operational independence and investment expertise that have driven NEOS's rapid growth trajectory.
The deal underscores sustained institutional appetite for income-generating ETF strategies and reflects the broader shift toward active management within the ETF ecosystem, where product innovation and yield optimization have become competitive differentiators.
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