The Goldman Sachs Group has completed the acquisition of NextCapital Group in a move that helps expand Goldman Sachs’ services to the growing defined contribution retirement market, Goldman Sachs announced today.
The acquisition allows Goldman Sachs to personalize managed defined contribution retirement accounts and the digital advice connected with the accounts, the firm said.
NextCapital’s platform will become part of Goldman Sachs Asset Management’s Multi-Asset Solutions business. NextCapital’s team of more than 150 professionals has joined Goldman Sachs.
NextCapital is an open-architecture digital retirement advice provider based in Chicago. The two firms partner with financial institutions across the United States to personalize retirement planning and managed accounts to individual investors through workplace retirement plans and individual retirement accounts.
“This acquisition accelerates our investment in technology to build compelling client solutions in asset management,” David Solomon, chairman and CEO of Goldman Sachs, said in a statement. “This is an area of strategic focus for us. (We want) to create even more innovative ways to serve the growing defined contribution market.”
Luke Sarsfield, co-head of Goldman Sachs Asset Management, added in a statement, “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.”
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, Goldman Sachs Asset Management said.