The Goldman Sachs Group, Inc. “Goldman Sachs” (NYSE: GS) has announced it has entered into an agreement to acquire Innovator Capital Management (Innovator), a pioneer of defined outcome ETFs.
Innovator writes that it manages USD28 billion across 159 defined outcome ETFs as of September 30, 2025, with capabilities to drive outcomes for clients across income, targeted buffer, and growth strategies.
The transaction will significantly expand Goldman Sachs Asset Management’s ETF lineup and future product roadmap and enhance the firm’s offerings in one of the fastest-growing active ETF categories, the firm says.
“Active ETFs are dynamic, transformative, and have been one of the fastest-growing segments in today’s public investment landscape. By acquiring Innovator, Goldman Sachs will expand access to modern, world-class investment products for investor portfolios,” says David Solomon, Chairman and Chief Executive Officer of Goldman Sachs. “Innovator’s reputation for innovation and leadership in defined outcome solutions complements our mission to enhance the client experience with sophisticated strategies that seek to deliver targeted, defined outcomes for investors.”
Global active ETF assets under management (AUM) are at USD1.6 trillion, growing at a 47 per cent compound annual growth rate (CAGR) since 2020 as investors increasingly access public markets through the ETF wrapper. Having grown at 66 per cent CAGR since 2020, defined outcome ETFs are a key component of the rapidly growing active ETF market, driven by the objective to deliver innovative structured strategies in accessible formats. Investors are increasingly using defined outcome ETFs to add a broad and customizable range of objectives to their portfolios that meet their risk control needs and performance objectives.
“This transaction is a pivotal milestone for our business,” says Bruce Bond, CEO of Innovator. “Goldman Sachs has a long history of discerning emerging trends and important directional shifts within the asset management industry. We are excited to deliver world-class investment solutions to clients within the ETF framework and expand our business in this high-growth, sector-leading category. These synergies, among numerous others, make Goldman Sachs an ideal partner for us.”
Defined outcome ETFs utilise derivatives and options-based strategies that seek to offer specific objectives such as principal downside protection, yield enhancement, and defined outcomes if invested for the full outcome period, allowing investors to build and customise portfolios through the tax-efficient ETF wrapper.
The transaction consideration is expected to be approximately USD2.0 billion, payable in a combination of cash and equity, subject to the achievement of certain performance targets. The transaction is expected to close in the second quarter of 2026, subject to regulatory approval and other customary closing conditions.
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