Goldman Sachs Group Inc (NYSE:GS, XETRA:GOS) said it will acquire Innovator Capital Management for about $2 billion in cash and equity, expanding its footprint in one of the fastest-growing corners of the investment industry as demand for active exchange-traded funds accelerates.
Innovator, regarded as a pioneer in so-called defined outcome or “buffer” ETFs, manages $28 billion in assets under supervision across 159 strategies as of September 30. The firm launched the industry’s first defined-outcome ETF in 2017 and has since become the second-largest issuer in the segment, drawing roughly $4.1 billion of the category’s $11.1 billion in net inflows this year, according to Jefferies.
Goldman said the transaction, which is expected to close in the second quarter of 2026, will bring Innovator’s roughly 60 employees into its asset management division, including its Third-Party Wealth and ETF teams. The bank is paying about 7.1% of assets for the business, a higher multiple than past sales of specialty ETF firms, though Jefferies analysts said the premium reflects faster growth and higher fee rates in active ETFs.
Chicago-based Innovator offers funds that use derivatives and options-based strategies within a tax-efficient ETF wrapper to provide downside buffers, yield enhancement or defined performance targets over a set period. The category has grown rapidly to about $76 billion in assets as investors look for protection during bouts of market volatility.
The deal marks another step in Goldman’s effort to build more durable revenue streams in its Asset and Wealth Management arm following recent partnerships and acquisitions, including tie-ups with T Rowe Price and venture-capital manager Industry Ventures.
Based on September asset levels, Goldman said the combined business would manage more than $75 billion across more than 216 ETF strategies globally, positioning it among the top 10 active ETF providers.