Goldman Sachs Acquires Innovator Capital Management for $2 Billion
Goldman Sachs has announced its plans to acquire Innovator Capital Management, a Wheaton, Illinois-based company specializing in defined-outcome ETFs, for $2 billion. This strategic deal will combine the bank with an issuer of a relatively new type of exchange-traded fund that has gained attention in the financial industry.
Innovator Capital Management, led by Bruce Bond, co-founder of the firm, has more than $28 billion of assets under supervision in over 150 ETFs. The company is known for its defined-outcome ETFs, also known as “buffer funds,” which aim to limit investors’ downside risk while capping upside potential. These products have become popular among financial advisors seeking to protect client portfolios.
“You get the existing platform and the track record,” said Marc Nachmann, Goldman’s global head of asset and wealth management. “They already have $28 billion and have a broad following around the advisor community. That head start does matter.”
ETF Buffers Hedge Risk but Limit Upside
Defined-outcome ETFs have seen a surge in popularity as investors look for safety from market volatility and seek income-generating alternatives to traditional bonds. Investors have allocated approximately $11.4 billion into structured outcome products this year, with about $4.1 billion going to Innovator’s offerings.
Despite their popularity, these products have faced criticism from some quarters, including hedge funds like AQR, which argue that buffer funds and other options-based products offer lower returns with higher risks compared to simpler alternatives.
Goldman Sachs Asset Management entered the buffer ETF space earlier this year with a lukewarm market reception. The acquisition of Innovator is expected to bolster Goldman’s position in this market. The firm’s assets under management in ETFs will increase from $51 billion to $79 billion, making it one of the top 10 largest active issuers.
Goldman Sachs Expands Through Acquisitions
Goldman’s acquisition of Innovator Capital Management is part of a series of recent deals aimed at expanding its offerings and market presence. The firm has also acquired venture-capital investor Industry Ventures and made a $1 billion investment in T. Rowe Price Group Inc.
Top executives at Goldman have signaled their openness to further acquisitions to complement their push into private markets and compete with industry giants like Blackstone and KKR.
The acquisition of Innovator will see the company’s team of over 60 employees joining Goldman’s third-party wealth and ETF teams. The deal is expected to close in the second quarter of 2026, pending regulatory approvals. Goldman’s asset and wealth management unit currently oversees approximately $3.5 trillion in assets.
