Goldman to Expand ETF Footprint With the Buyout of Innovator Capital

The Goldman Sachs Group, Inc. GS has entered into an agreement to acquire Innovator Capital Management (Innovator), a leading provider of defined outcome exchange-traded funds (ETFs). Innovator Capital manages $28 billion in assets under supervision (AUS) across 159 defined outcome ETFs, covering income, targeted buffer, and growth strategies, which will significantly expand Goldman’s ETF lineup and future product roadmap.

David Solomon, chairman and CEO of Goldman, stated that “Active ETFs are dynamic, transformative, and have been one of the fastest-growing segments in today’s public investment landscape. By acquiring Innovator, Goldman Sachs will expand access to modern, world-class investment products for investor portfolios.”

Transaction Details of GS Deal

Under the terms of the agreement, GS will pay roughly $2 billion in a combination of cash and equity, contingent upon the achievement of certain performance targets. Innovator Capital’s more than 60 employees will join Goldman Sachs Asset Management’s Third-Party Wealth and ETF teams. The business will operate as a wholly owned subsidiary, while existing investment management and service arrangements will remain unchanged.

The transaction is expected to close in the second quarter of 2026, pending regulatory approvals and other customary closing conditions.

GS’s Rationale Behind the Acquisition

The transaction significantly expands Goldman’s active ETF capabilities and is part of a broader pivot toward building “durable revenue streams” through diversified asset management and wealth-management (AWM) offerings.

The acquisition integrates Innovator Capital's proven defined outcome ETF suite into Goldman' platform, broadening the range of outcome-oriented solutions available to clients through its expanding AWM business.

Upon completion, Goldman and Innovator Capital will manage more than 215 ETF strategies globally, representing over $75 billion in total AUS, positioning Goldman’s Asset Management among the top-10 active ETF providers worldwide.

The impending acquisition is part of Goldman’s strategy to expand leadership in innovative and growing investment categories and to deliver attractive investment performance and service to its clients. The firm continues to expand its capabilities across Direct Indexing, separately managed accounts, alternative investment strategies, and active ETFs as part of its broader push to scale its asset and wealth management platform.

The latest deal aligns with Goldman's efforts to focus on growth in the AWM business as a cornerstone of its efforts to make revenue and profit less reliant on volatile investment banking and trading. Earlier, in October 2025, GS agreed to acquire Industry Ventures to expand its exposure to the innovation economy and further solidify its position in the global alternatives market. In September 2025, Goldman partnered with T. Rowe Price in a $1 billion deal to co-develop retirement and wealth products.

GS's Price Performance & Zack Rank

Over the past year, GS shares have rallied 34.7% compared with the industry’s growth of 25.7%.

Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Acquisitions by Other Finance Firms

Last month, Fulton Financial Corp. FULT agreed to acquire Blue Foundry Bancorp BLFY in an all-stock transaction valued at roughly $243 million.

Per the agreement, FULT will pay 0.6500 shares for each share of BLFY. The merger agreement has been approved by the board of directors of both entities. The deal speeds up Fulton’s expansion in the lucrative northern New Jersey market and is projected to lift first full-year earnings by more than 5%, boost tangible book value per share right away and leave regulatory capital ratios unchanged at closing.

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This article originally published on Zacks Investment Research (zacks.com).

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