In a move that helps expand its services to the growing defined contribution retirement market, Goldman Sachs Group announced this week the completion of its acquisition of NextCapital Group, Inc.
The transaction, originally announced in late March, will accelerate the expansion of Goldman Sachs’ services to the DC 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.
“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”
Goldman Sachs Chairman and CEO David Soloman
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).
“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,” said David Solomon, Chairman and CEO of Goldman Sachs.
“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, CEO 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.
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