Goldman Sachs has agreed to amass NextCapital, a Chicago-based fintech agency that gives automated recommendation to corporate retirement plan members.
The financial institution mentioned Tuesday in a launch that the deal, the phrases of which weren’t disclosed, can be accomplished within the second half of this 12 months. The acquisition ranks among the many prime 5 asset administration offers New York-based Goldman has completed, based on the Monetary Instances, which first reported the deal.
Goldman and rivals together with Morgan Stanley and JPMorgan Chase have amped up their acquisitions in each fintech and asset administration in recent times. The banks are jockeying to deepen relationships with key cohorts like corporate staff and diversify income by bulking up in cash administration, which is sometimes a steadier income supply than buying and selling and different Wall Avenue actions.
“This acquisition furthers our strategic objective of building compelling client solutions in asset management and accelerating our investment in technology to serve the growing defined contribution market,” Goldman CEO David Solomon mentioned within the launch.
NextCapital was based in 2014 and most recently raised enterprise funds in 2020, when it mentioned it had a complete of $85 million in funding.
The deal provides Goldman one other device to supply purchasers methods for workers to enhance retirement outcomes. The financial institution, recognized for its Ayco private monetary administration providing, mentioned it already has about $350 billion in belongings beneath supervision for outlined profit and outlined contribution plans.
“Employers are looking to provide their employees tailored solutions and customizable advice that can better support individual saving and investing needs,” mentioned Luke Sarsfield, international co-head of Goldman’s asset administration division. “We believe personalization represents the future of retirement savings and will drive the next wave of innovative retirement solutions.”
