Goldman Sachs to Buy Innovator Capital in $2 Billion Cash-Stock Deal

TLDR

• Goldman Sachs to acquire Innovator Capital in a $2 billion cash-and-stock deal

• Innovator oversees $28B in assets across 159 defined outcome ETFs

• Active ETF market has grown to $1.6 trillion since 2020, Goldman said

• Deal expected to close in Q2 2026 pending regulatory approvals

Goldman Sachs announced plans on December 1, 2025, to acquire Innovator Capital Management in a transaction valued at approximately $2 billion. The deal will be paid in cash and stock and is expected to close in the second quarter of 2026.

The move expands Goldman Sachs Asset Management’s position in the active exchange-traded fund (ETF) market, one of the fastest-growing segments in global asset management. Innovator Capital, based in the U.S., manages $28 billion in assets under supervision across 159 ETFs focused on defined outcome strategies.

Expanding in Active ETFs and Defined Outcome Strategies

Goldman Sachs described the acquisition as a strategic step to increase its capabilities in active ETFs. The global active ETF market now holds $1.6 trillion in assets and has grown at a 47% compound annual growth rate since 2020, according to Morningstar data cited by the firm.

“Active ETFs are dynamic and have been one of the fastest-growing segments in today’s public investment landscape,” said Goldman Sachs CEO David Solomon. He added that Innovator’s defined outcome strategies will support Goldman Sachs’ mission to offer modern investment tools across portfolios.

Innovator’s ETF offerings focus on income, buffer, and growth objectives. These products use derivatives and options-based strategies to provide outcomes like downside protection and targeted returns if held for a specified period.

Innovator Team to Join Goldman Sachs Asset Management

Innovator Capital’s leadership team, including Co-Founder and CEO Bruce Bond, will join Goldman Sachs Asset Management. Other executives such as John Southard, Graham Day, and Trevor Terrell will also move to Goldman. Around 60 employees from Innovator are expected to be integrated into Goldman Sachs’ ETF and Third-Party Wealth teams.

“This transaction is a pivotal milestone for our business,” said Bruce Bond. He stated that Goldman Sachs is well-positioned to expand the reach of defined outcome ETFs and build on existing client solutions.

After the acquisition, Goldman Sachs Asset Management and Innovator will together manage over 215 ETF strategies worldwide. This represents more than $75 billion in assets under supervision, positioning the firm among the top ten active ETF providers globally.

Deal Structure and Future Strategy

The deal is structured as a combination of cash and equity and is subject to regulatory approval and other standard closing conditions. The transaction value is dependent on achieving certain performance targets.

Goldman Sachs was advised by its internal Global Banking and Markets division and two legal firms—Wachtell, Lipton, Rosen & Katz and Willkie Farr & Gallagher LLP. Innovator received financial advice from Oppenheimer & Co. and legal guidance from Vedder Price.

Goldman Sachs said the acquisition supports its goal of expanding durable revenue streams in asset management. The firm also offers direct indexing, alternative investment strategies through evergreen funds, and separately managed accounts.

The defined outcome ETF market has been expanding rapidly, growing at a 66% compound annual growth rate since 2020. Investors are using these products for customization, risk management, and specific return objectives through the tax-efficient ETF format.

The transaction is part of Goldman Sachs’ continued effort to align with long-term trends in asset management, especially as demand increases for structured and outcome-oriented investment solutions.