The acquisition of NextCapital Group by The Goldman Sachs Group has been finalised, according to the company’s announcement. Through customised managed accounts and digital guidance, the decision expedites Goldman Sachs’ service development to the expanding defined contribution (DC) retirement market.
The platform from NextCapital will join the 150-person multi-asset solutions team at Goldman Sachs Asset Management.
This purchase advances their commitment in technology to offer appealing client solutions in asset management, stated chairman and CEO of Goldman Sachs, David Solomon. They are thrilled to welcome the outstanding team at NextCapital as they continue to develop even more novel ways to service the expanding defined contribution market because this is an area of strategic priority for them.
Individuals who are preparing for retirement must contend with market volatility and greater inflation, which affect their spending requirements and investment returns, said co-head of Goldman Sachs Asset Management, Luke Sarsfield. Many investors seek customised planning and managed account options that can adjust investment portfolios and contribution plans over time to take into account shifting market conditions and member circumstances. As they work to enhance upcoming plan design and participant results, they welcome the opportunity to collaborate with NextCapital in the DC market.
According to John Patterson, CEO of NextCapital, by partnering with Goldman Sachs, they believe they can address a subject that has been a source of contention of the retirement sector for decades: the struggle to properly prepare the bulk of investors for retirement. They try to do this by involving IRA investors and workers in affordable, customised, and regulated retirement plans.
Head of MAS at Goldman Sachs Asset Management, Greg Calnon, stated that they are committed to providing cutting-edge pension solutions and implementation skills for both DC and defined benefit plans. NextCapital adds innovative new personalization and technology capabilities, as well as a creative spirit, to their whole array of retirement options.