Original title: 1.6 billion euros! Goldman Sachs Group since Solomon took officeThe biggest acquisition has emerged.
Source: Wall Street
Goldman Sachs Group has agreed to buy NN Investment Partners, the investment management arm of Dutch insurer NN Group, for about 1.6 billion euros. This is the largest merger and acquisition deal since David Solomon took over as Goldman Sachs Group CEO in 2018.
NNIP, a wholly owned subsidiary of NN Group, the largest life insurer in the Netherlands, currently manages about $355 billion in assets. By contrast, Goldman Sachs Group currently manages about $2.3 trillion in assets. Of the assets under management by NN Investment, $190 billion is managed on behalf of its insurance parent company, while the rest is managed by outside investors.
The deal will double Goldman Sachs Group's total assets under management in Europe to $600 billion. Under the agreement, NNIP's 900 employees will join Goldman Sachs Group and the Netherlands will become an "important location" for its European business.
The two sides also reached a 10-year strategic cooperation agreement under which Goldman Sachs Group will provide asset management services for NN Group's $190 billion portfolio.
The Financial Times reported that Goldman Sachs Group beat DWS, the Frankfurt-based asset manager, in the final round of bidding. Including UBS.Asset Management, Janus Henderson and American Insurance Company Prudential plcFinance is also interested in the deal.
NN Group came under pressure last year from Elliott Management, a hedge fund, to improve its returns and simplify its operations. The company said in April that it was considering options for its investment management business, including a merger, joint venture or partial divestiture of the unit.
Asset managers around the world are pursuing scale to protect profits from rising costs and falling fees. Goldman Sachs Group CEO David Solomon said in an interview that if the scale growth can be accelerated, Goldman Sachs Group "will certainly seriously consider" further acquisitions in the field of asset management.