Goldman Sachs is buying corporate retirement plan robo-advisor NextCapital

Goldman Sachs has agreed to accumulate NextCapital, a Chicago-based fintech agency that gives automated recommendation to company retirement plan individuals.

The financial institution stated Tuesday in a launch that the deal, the phrases of which weren’t disclosed, can be accomplished within the second half of this yr. The acquisition ranks among the many prime 5 asset administration offers New York-based Goldman has performed, in response to the Monetary Occasions, which first reported the transfer.

Goldman and rivals together with Morgan Stanley and JPMorgan Chase have amped up their acquisitions in each fintech and asset administration in recent times. The banks are jockeying to deepen relationships with key cohorts like company workers and diversify income by bulking up in cash administration, which is often a steadier income supply than buying and selling and different Wall Avenue actions.

“This acquisition furthers our strategic goal of constructing compelling consumer options in asset administration and accelerating our funding in expertise to serve the rising outlined contribution market,” Goldman CEO David Solomon stated within the launch.

NextCapital was based in 2014 and most recently raised enterprise funds in 2020, when it stated it had a complete of $85 million in funding.

The deal offers Goldman one other device to supply shoppers methods for workers to enhance retirement outcomes. The financial institution, recognized for its Ayco private monetary administration providing, stated it already has about $350 billion in belongings underneath supervision for outlined profit and outlined contribution plans.

“Employers wish to present their workers tailor-made options and customizable recommendation that may higher help particular person saving and investing wants,” stated Luke Sarsfield, world co-head of Goldman’s asset administration division. “We consider personalization represents the way forward for retirement financial savings and can drive the subsequent wave of progressive retirement options.”