FinTech: Goldman Sachs Acquires Retirement Focused Robo Advisor NextCapital

The acquisition will help Goldman Sachs address the corporate employee market as well as retail investors.

Goldman Sachs (NYSE: GS) Asset Management has acquired Next Capital, a technology enabled advisor of retirement solutions offered in partnership with financial services firms that provide a brand-specific user experience, advice delivery and system integration. The terms of the acquisition were not disclosed. (Nasdaq)

NextCapital’s flexible, open-architecture platform enables clients, including asset managers, plan sponsors, advisors and recordkeepers, to meet individual investor demand for more digitalization, retirement income solutions, tailored strategies and insights.

The company’s platform already powers the Goldman Sachs Workplace Retirement Solution, a retirement program for small and mid-sized businesses. Meanwhile, Goldman Sachs Asset Management (GSAM) has total defined benefit (DB) and defined contribution (DC) assets under supervision of approximately $350 billion through retirement programs offered through employers.

The acquired unit will form a part of the Multi-Asset Solutions business of GSAM that has approximately $220 billion in assets under supervision.

“Employers are looking to provide their employees tailored solutions and customizable advice that can better support individual saving and investing needs to help improve retirement savings outcomes,” said Luke Sarsfield, Co-Head of Goldman Sachs Asset Management. “We believe personalization represents the future of retirement savings and will drive the next wave of innovative retirement solutions.”

NextCapital: Funding

NextCapital last raised $30 million in September 2020 via a growth financing led by FP Credit, the credit investment arm of Francisco Partners, a leading global investment firm, along with participation by Oak HC/FT and IA Capital Group.

The amount was earmarked to advance the startup’s retirement income capabilities and growth partnerships, and brought up the firm’s total capital raised to $85 million.

In September 2021 Goldman Sachs acquired GreenSky (NASDAQ: GSKY), a fintech lender specializing in BNPL home improvement loans, for $2.24 billion.

Goldman Sachs said the transaction would help accelerate its efforts to “create the consumer banking platform of the future.”

Related Story: Goldman Sachs Snaps Up BNPL Fintech Greensky For $2.24B

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