Goldman Sachs’ Asset Management (GSAM) agreed to acquire the investment management unit of Dutch insurance company NN Group for approximately €1.6bn ($1.9bn). This is Goldman’s largest acquisition since 2018. The deal for NN Investment Partners, which manages $355bn in AUM, will significantly expand Goldman’s influence in European asset management and is the latest consolidation across the industry.
FT notes that the acquisition will help Goldman in developing areas that charge regular fees such as asset and wealth management, while reducing its dependence on stocks and bonds trading businesses. GSAM, with $2.3tn in assets under supervision, overcame Frankfurt-based asset manager DWS in the final bidding round to acquire NN Investment Partners. UBS Asset Management, Janus Henderson and Prudential Financial were interested in prior rounds.
Solomon mentioned to FT that the acquisition helps in expanding GSAM platform, especially by scaling-up their position in Europe. Solomon added, “Everything that NN does, we already do, and this is adding and accelerating our growth … and continues to help us scale”.
Goldman Sachs 5.75% 2022s are stable at 102, yielding 0.22%
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