In a significant consolidation move within the global asset management industry, The Goldman Sachs Group announced a definitive agreement to acquire NEOS Investments, an innovative U.S. asset manager specialized in active, option-based income ETFs. The transaction is valued at up to $2.25 billion, payable through a combination of cash and equity tied to future performance targets.
The transaction is expected to close in the first quarter of 2027, subject to customary regulatory approvals.
Global Scale and Leadership in Active ETFs
Founded in 2022, NEOS rapidly established itself as one of the fastest-growing ETF issuers in the United States, scaling to approximately $30 billion in assets under management (AUM) across 19 ETF strategies. The firm gained industry prominence through its systematic covered call and option-overlay strategies applied across equities, fixed income, and digital assets — including flagship products such as the Bitcoin High Income ETF (BTCI) and the Ethereum High Income ETF (NEHI).
With the integration of NEOS, following Goldman’s earlier acquisition of Innovator Capital Management, Goldman Sachs Asset Management (GSAM) will expand its overall ETF platform to over $130 billion in AUM. According to Morningstar industry metrics, the move positions Goldman Sachs as the 8th largest active ETF manager globally.
Derivative-based income ETFs represent one of the fastest-growing categories in asset management, currently managing roughly $180 billion globally with a compound annual growth rate (CAGR) exceeding 70% since 2021.
“As investor demand for active ETF strategies continues to accelerate, NEOS’s disciplined investment approach will seamlessly complement our existing capabilities in downside protection and systematic income generation,” stated David Solomon, CEO of Goldman Sachs.
World-Class Expertise and Institutional Endorsement
As part of the acquisition, NEOS co-founders Troy Cates and Garrett Paolella, alongside the entire NEOS operational and investment team, will join Goldman Sachs Asset Management. Both Cates and Paolella will join Goldman Sachs as Partners.
Broader Market Impact
Goldman Sachs’ decision to execute an inorganic acquisition rather than building an options-income franchise organically highlights the high technical barrier to entry and specialized expertise required to manage systematic derivative strategies at scale.
Beyond the U.S. market, NEOS’s quantitative methodologies have established international reach, including strategic indexing partnerships in Latin America that have powered income-generating ETFs on local exchanges.
For the broader asset management industry, this acquisition confirms that systematic active management and option engineering have transitioned from niche overlay tools into core components of modern institutional and wealth management portfolios.
