Goldman Sachs to Buy Robo-Advisor NextCapital
Posted on 03/30/2022
Goldman Sachs Asset Management, a unit of the Goldman Sachs Group, Inc., entered into an agreement to acquire NextCapital Group, Inc. The transaction is expected to close in the second half of 2022, subject to regulatory and other approvals and conditions. The transaction will accelerate the expansion of Goldman Sachs’ services to the growing defined contribution market through personalized managed accounts and digital advice. NextCapital, based in Chicago, is an open-architecture digital retirement advice provider that partners with financial institutions across the United States to deliver personalized, customizable retirement planning and managed accounts through workplace retirement plans and individual retirement accounts (IRAs)
NextCapital’s managed account platform currently powers the Goldman Sachs Workplace Retirement Solution, a retirement program for small and mid-sized businesses.
The NextCapital team will continue to be headquartered in Chicago.
NextCapital was founded in 2014. In September 2020, NextCapital raised US$ 30 million in Series D funding led by FP Credit Partners (Francisco Partners), with Oak HC/FT and IA Capital Group also participating.
Advisors
Goldman Sachs & Co. LLC is serving as financial advisor and Weil, Gotshal & Manges LLP is serving as legal counsel to Goldman Sachs. PJT Partners is serving as exclusive financial advisor and Morgan, Lewis & Bockius LLP and Orrick, Herrington & Sutcliffe LLP are serving as legal counsel to NextCapital.
