Goldman Sachs to Acquire Innovator Capital Management for $2 Billion

by Divya Kolmi

12/2/20251 min read

Goldman Sachs has announced its agreement to purchase Innovator Capital Management, a firm specializing in defined-outcome exchange-traded funds (ETFs), for approximately $2 billion. This strategic acquisition is part of Goldman Sachs' broader initiative to enhance its asset management division and expand its range of ETF offerings in a rapidly evolving investment landscape.

As of September 30, 2025, Innovator Capital Management managed around $28 billion in assets across 159 ETFs. The firm is known for its innovative approach to ETFs, which includes utilizing options contracts to mitigate downside risks and target specific gains over predetermined time horizons. This unique offering positions Innovator as a key player in the growing market for active ETFs, which are increasingly recognized for their potential to provide tailored investment solutions.

David Solomon, the CEO of Goldman Sachs, emphasized the importance of this acquisition, stating, “Active ETFs are dynamic and transformative, representing one of the fastest-growing segments in the current investment environment. By acquiring Innovator, we will broaden access to modern, world-class investment products.”

This acquisition aligns with Goldman Sachs' shift in focus towards asset and wealth management, a strategy that has gained momentum following its decision to pivot away from consumer banking. The firm has been actively pursuing growth in this sector, having recently made several notable investments, including a $1 billion stake in T. Rowe Price and the acquisition of Industry Ventures, a venture capital firm, to strengthen its alternative investments platform.

Upon completion of the acquisition, which is expected to finalize in the second quarter of 2026, Innovator's team of over 60 employees will join Goldman Sachs' asset management division, further enhancing the bank's capabilities in this competitive market.

This move underscores Goldman Sachs' commitment to expanding its footprint in the asset management space, particularly in the area of ETFs, which continue to gain popularity among investors seeking flexible and innovative investment strategies.