Goldman Sachs to Acquire Innovator Capital Management

Goldman Sachs announced on Monday that it plans to acquire Innovator Capital Management, an active exchange-traded fund (ETF) sponsor, in a cash-and-stock deal valued at approximately $2 billion. This move reflects the Wall Street bank’s strategy to grow within a rapidly expanding sector of wealth management.

Active funds have been gaining traction recently, as investors increasingly prefer a hands-on investment approach. This shift comes after the challenges faced by passively managed index products, especially in light of tightening monetary policies affecting returns.

According to data from Morningstar, global assets in actively managed ETFs have reached $1.6 trillion, showing an impressive compound annual growth rate of 47% since 2020.

David Solomon, CEO of Goldman Sachs, emphasized the significance of active ETFs, stating they are dynamic and transformative, making them one of the fastest-growing segments in today’s investment landscape.

In related news, earlier this year, JPMorgan Asset Management introduced its largest active ETF, backed by $2 billion in commitments from external clients.

As for Innovator Capital Management, it currently oversees $28 billion across 159 defined outcome ETFs, focusing on strategies including income, buffers, and growth. Co-founder and CEO Bruce Bond will transition to Goldman Sachs Asset Management along with other key staff. Around 60 employees from Innovator will also join the team at Goldman Sachs Asset Management.

The deal is expected to finalize in the second quarter of 2026, with Goldman Sachs Global Banking & Markets and Oppenheimer & Company acting as financial advisors for their respective sides of the transaction.