Goldman Sachs to Acquire Innovator for $2 Billion in ETF Expansion

In Brief

• Goldman Sachs to acquire Innovator for $2B, boosting active ETF market presence.
• Innovator manages $28B in defined outcome ETFs with strong adviser adoption.
• Deal adds 215 ETF strategies, making Goldman a top ten active ETF provider.

Goldman Sachs will acquire Innovator Capital Management for $2 billion to boost its footprint in active ETFs. The deal involves a mix of cash and equity, subject to performance targets and regulatory approvals.

Innovator oversees $28 billion in assets across 159 defined outcome ETFs, offering structured investment solutions with risk buffers. These ETFs use options-based strategies to manage risk and returns over fixed outcome periods.

Goldman’s ETF presence will grow to over $75 billion in assets under supervision across more than 215 strategies. This positions the firm among the top ten active ETF providers globally after the deal closes in Q2 2026.

Defined outcome ETFs have surged in popularity, growing at a 66% compound annual rate since 2020. Investors use these funds to pursue specific goals like downside protection and targeted gains, without giving up tax efficiency.

Innovator Team and Platform to Join Goldman Sachs

Over 60 Innovator employees, including co-founders Bruce Bond and John Southard, will join Goldman Sachs Asset Management. The team will integrate into Goldman’s Third-Party Wealth and ETF divisions following the transaction.

Innovator’s executives bring over 70 years of combined ETF industry experience, adding valuable expertise to Goldman’s investment offerings. Goldman plans to keep Innovator’s existing service providers and maintain its operational framework.

Goldman aims to expand durable revenues through acquisitions and recently invested in T. Rowe Price and Industry Ventures. This latest deal aligns with its broader strategy to lead in high-growth investment categories and serve evolving client needs.

The transaction boosts Goldman’s efforts to improve its ETF product roadmap and compete with larger asset managers. Advisors expect the acquisition to provide a competitive edge in the growing structured outcome ETF space.

Goldman Sachs served as its own financial advisor, with legal support from Wachtell, Lipton, Rosen & Katz and Willkie Farr & Gallagher. Innovator was advised by Oppenheimer & Co and legal counsel Vedder Price.