Goldman Sachs to Acquire Options-Income ETF Firm NEOS for $2.25B

Goldman Sachs Group Inc. announced Wednesday an agreement to acquire NEOS Investments in a cash-and-equity transaction valued at up to $2.25 billion. Based in Westport, Connecticut, and founded in 2022, NEOS operates $30 billion across 19 options-based income ETFs that generate returns through systematic strategies. The acquisition deepens Goldman Sachs’ expansion into the fastest-growing corner of asset management and positions the bank among the eight largest active ETF managers. David Solomon, Goldman’s chairman and CEO, called NEOS’ approach “highly complementary” to existing capabilities. Closing is expected in first quarter 2027, pending regulatory approval.

$30 Billion Platform Joins Goldman Asset Management

NEOS manages 19 options-based income ETFs with approximately $30 billion in assets under supervision as of June 30, 2026. The acquisition adds this substantial platform to Goldman Sachs Asset Management, which already oversaw $40 billion in options-based ETF solutions. Combined, the transaction will elevate Goldman’s total ETF assets to approximately $130 billion, ranking the bank eighth among active ETF managers globally.

The deal reflects institutional demand for income-generating strategies. NEOS’ flagship offerings include high-yielding covered-call and systematic income strategies, including BTCI, a bitcoin-focused ETF managing $1.1 billion that yields approximately 27%. The consideration structure emphasizes performance—the headline $2.25 billion depends on certain performance commitments, meaning the actual payout could be lower.

This expansion reflects market momentum:

• Derivative income ETFs now hold roughly $180 billion globally, compounding at over 70% annually since 2021
• Investor demand for active ETFs continues rising as rates remain volatile
• NEOS co-founders Troy Cates and Garrett Paolella will become partners at Goldman Asset Management

Second Major ETF Acquisition in Nine Months

Goldman acquired Innovator Capital Management for approximately $2 billion in December 2025, specializing in defined-outcome ETFs. Together, the two transactions and Goldman’s existing platform create a broad options-based ETF franchise competing directly with BlackRock and other giants in the accelerating derivatives-based income fund space.

Marc Nachmann, who oversees Goldman’s asset management division, confirmed the segment represents significant growth potential. Goldman’s wealth and asset management unit recorded $4.04 trillion in assets under supervision at second-quarter end, posting $4.60 billion in revenue—up 20% year-over-year.

Conclusion

The NEOS transaction exemplifies Wall Street’s willingness to pay premium prices for specialized expertise in high-growth segments. Options-based income strategies have escaped niche status, attracting institutional capital and retail investors seeking yield in a volatile rate environment. By acquiring NEOS, Goldman Sachs signals conviction that this trend will sustain and that building scale through acquisition beats competing with established players on price. Closing in early 2027 will test this thesis immediately.