Goldman Sachs to Buy Innovator Capital for $2 Billion, Expanding ETF Footprint

Goldman Sachs Group Inc. has agreed to acquire Innovator Capital Management for $2 billion, a major expansion of the bank’s exchange-traded fund footprint and a bet on one of the fastest-growing corners of the ETF universe.

The deal will combine Goldman’s global asset-management operation with one of the pioneers of “defined-outcome” ETFs, also known as buffer funds, which aim to limit investor losses in exchange for capping upside potential. These funds have surged in popularity among financial advisers seeking protection from market volatility and alternatives to traditional fixed income. Innovator, based in Wheaton, Illinois, supervises more than $28 billion across 150+ ETFs, making it the second-largest provider of buffer ETFs behind First Trust.

Its co-founder and CEO, Bruce Bond, launched the first defined-outcome ETFs in 2018. The category has expanded sharply in recent years as investors poured an estimated $11.4 billion into structured-outcome products so far this year, including $4.1 billion into Innovator’s funds,  according to Bloomberg Intelligence.

Marc Nachmann, Goldman’s global head of asset and wealth management, said Innovator’s entrenched adviser relationships and established platform were key attractions.“You get the existing platform and the track record,” Nachmann said. “They already have $28 billion and have a broad following around the adviser community. That head start does matter.”

Goldman Sachs Asset Management launched its own buffer ETFs earlier this year, but the three U.S. large-cap products have accumulated only $36 million in assets… a modest start compared to category leaders. The Innovator deal accelerates Goldman’s ETF ambitions dramatically. GSAM currently manages about $51 billion in ETFs; acquiring Innovator will lift that total to $79 billion, placing Goldman among the 10 largest active ETF issuers.

The structured-outcome ETF segment has grown from under $60 billion at the end of 2024 to about $76 billion today. The transaction adds to a string of deals Goldman has struck in recent months, including:

• The purchase of venture-capital investor Industry Ventures
   
• A $1 billion investment in T. Rowe Price
   
• Continued interest in acquisitions that enhance its private-markets business and deepen competition with Blackstone and KKR

Innovator’s 60-plus employees will join Goldman’s third-party wealth and ETF divisions, the companies said. The acquisition is expected to close in the second quarter of 2026, pending regulatory approval. Goldman’s asset and wealth management unit oversaw $3.5 trillion at the end of September.

About Goldman Sachs Group Inc.

Goldman Sachs Group Inc. (NYSE: GS) is a leading global financial institution that provides investment banking, securities, asset management, and wealth management services to corporations, governments, and individuals worldwide. Founded in 1869 and headquartered in New York City, the firm operates across more than 30 countries and manages trillions of dollars in client assets. Goldman Sachs is known for its capital markets expertise, deep institutional relationships, and expansive global reach. Its Asset & Wealth Management division oversees approximately $3.5 trillion in assets under supervision as of September 2025.

At the time of publishing, Stocks.News holds positions in companies mentioned in the article.