Goldman Sachs announced Monday it has agreed to acquire Innovator Capital Management — a firm specializing in exchange-traded funds, or ETFs, designed to limit investor losses — for about $2 billion.
The cash-and-stock deal aims to expand the Wall Street giant’s offerings in a rapidly growing area of the investment market.
The acquisition, set to close in the second quarter of 2026, will bring Innovator into Goldman’s asset management division, which oversees investments for clients.
Innovator said it managed $28 billion in assets across 159 ETFs as of Sept. 30.
ETFs are investment funds that trade on stock exchanges in the same way that individual stocks do. They typically hold a basket of assets that include stocks or bonds.
Innovator focuses on “defined-outcome” ETFs, which utilize financial contracts known as options — agreements that allow buyers to purchase or sell assets at predetermined prices — to cushion against market drops or target specific returns over fixed periods.
“Active ETFs are dynamic, transformative, and one of the fastest-growing segments in today’s public investment landscape,” said Goldman Sachs CEO David Solomon.
“By acquiring Innovator, Goldman Sachs will expand access to modern, world-class investment products,” the veteran banker added.
The purchase marks Goldman’s latest move to bolster its asset and wealth management business.
It is a key focus for the bank’s top executives after the firm shifted its focus away from expanding consumer banking services.
In September, Goldman invested $1 billion in T. Rowe Price, a mutual fund company.
Then the following month, it acquired Industry Ventures, a firm focused on venture capital — investments in startups and private companies — to strengthen its offerings in alternative investments, which are assets outside traditional stocks and bonds.
Goldman’s emphasis on asset management comes amid broader industry trends, with ETFs surging in popularity due to their low costs and ease of trading.
Defined-outcome products, in particular, appeal to investors seeking protection in volatile markets without fully exiting stocks.
Goldman’s asset management arm has grown significantly in recent years, helping offset challenges in other divisions. The lender recently posted bumper profits after a resurgence in dealmaking activity.
Terms of the acquisition were not disclosed beyond the approximate price.
Innovator, founded in 2014, has carved out a niche in the ETF space by offering products that provide “buffers” against declines, often tied to major indexes like the S&P 500.
The company’s co-founders Bruce Bond and John Southard, along with other key executives, will join Goldman Sachs Asset Management as part of the deal.
Some 60 employees from Innovator are also expected to join Goldman Sachs Asset Management’s Third-Party Wealth and ETF teams.
Their kind of approach has attracted billions in inflows as investors navigate economic uncertainty.
Goldman Sachs shares rose slightly in early trading on Monday following the news.
The firm, headquartered in New York, reported $12.7 billion in revenue for its asset and wealth management segment in 2024, an uptick from previous years.
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