Goldman Sachs reached an agreement to acquire Innovator Capital Management for roughly $2 billion, marking its largest move this year to expand its asset and wealth management division. The firm said the deal will deepen its exchange-traded fund capabilities, particularly in the fast-growing defined-outcome ETF segment. Closing is expected in the second quarter of 2026.
Innovator oversees $28 billion across 159 ETFs as of September 30, specializing in structured fund products that use options and other contracts to offer targeted gains or limit losses over a specified period. The acquisition will bring more than 60 Innovator employees into Goldman’s asset management organization once the transaction is completed.
Goldman has made scaling its asset management business a top strategic priority after retreating from its earlier push into consumer banking. This pursuit has accelerated through a string of acquisitions and investments across the industry.
Goldman Is Buying Innovator
Defined-outcome ETFs have become one of the fastest-expanding parts of the U.S. retail investing market, appealing to investors seeking built-in risk buffers during volatile periods. Goldman CEO David Solomon said the acquisition fits into the firm’s broader plan to grow differentiated, modern investment offerings for clients.
The bank has been steadily reshaping its business mix. As previously covered, Goldman has moved away from loss-making consumer initiatives and redirected capital toward areas with steadier returns, including wealth, asset management, and private markets. Earlier this year, the firm took a $1 billion stake in T. Rowe Price and later purchased Industry Ventures to expand its alternative investments platform.
Adding Innovator’s lineup gives Goldman immediate scale in a category it previously lacked, positioning the firm to compete more aggressively with asset managers that have built large ETF franchises.
What the Deal Means for Investors and the Firm
For investors, the acquisition could broaden access to structured ETF products that have gained traction among both financial advisors and retail users. As Goldman integrates Innovator’s strategies, analysts expect the firm to expand distribution, product design, and institutional adoption across its global network.
For Goldman, the purchase reinforces its transition toward fee-based revenue streams. The bank has emphasized that asset and wealth management will play a defining role in its long-term earnings profile – particularly as markets shift toward low-cost, transparent investment vehicles.
Executives also view ETF growth as central to keeping pace with peers that have grown rapidly in passive and structured investment products. While Goldman has long dominated trading and investment banking, this acquisition signals a deeper push to compete in a segment increasingly favored by long-term investors.
The firm said Innovator’s team and ETF infrastructure will be folded directly into its asset management division, suggesting a rapid integration once approvals are secured.
