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Goldman Sachs says its acquisition of NN Investment Partners will push European product growth, equity and sustainable investments.
Goldman Sachs (NYSE: GS) has announced the acquisition of Netherlands-based asset manager NN Investment Partners for 1.7 billion euros ($1.9 billion). According to Goldman Sachs, the purchase will help the company scale its asset management footprint in Europe. In addition, the New York-headquartered banking giant also seeks to increase its sustainable investment capabilities.
Goldman Sachs and NN Investment Initiative
A recent official Goldman Sachs blog post stated that the banking giant would integrate NN Investment Partners into Goldman Sachs Asset Management (GSAM). This means that the more than 900 employees of the Dutch asset manager will come under the Goldman Sachs umbrella. Furthermore, the Netherlands will now serve as a hub for sustainability in public markets investing for Goldman Sachs. Speaking on the acquisition of NN Investment Partners, chairman, and chief executive officer of Goldman Sachs, David Solomon, said:
“This acquisition advances our commitment to put sustainability at the heart of our investment platform. It adds scale to our European client franchise and extends our leadership in insurance asset management.”
In addition, Solomon expressed optimism about the partnership with NN Investment. The CEO promised that “together we will focus on delivering long-term value to our clients and shareholders”. Furthermore, Solomon also aims to diversify Goldman Sachs revenue through the NN acquisition to focus on a range of more predictable businesses. These include consumer banking, wealth, and asset management.
NN Investment will also enhance GSAM’s operational efficiency. The Netherlands-based assets manager presumably achieves this via deeper integration of environmental, social, and governance (ESG) values. These improvements will improve Goldman Sachs’s product range and deliver better on clients’ investing priorities.
With this acquisition, Goldman Sachs’ assets under supervision (AUM) now sits at approximately $2.8 trillion. It is also worth noting that pursuant to the transaction, GSAM has entered into a long-term strategic partnership with NN Group. The latter is NN Investment’s parent company and will work with Goldman Sachs to manage a $180 billion asset portfolio.
Goldman Sachs is an American multinational investment bank and financial services company. Founded in 1869, the leading bank ranks 59th on the Fortune 500 list of the largest United States corporations by total revenue. The asset management arm of Goldman Sachs – Goldman Sachs Asset Management – is the primary investing area within the prominent megabank. According to the bank’s blogpost, GSAM delivers “investment and advisory services for the world’s leading institutions, financial advisors and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market.”
Headquartered in The Hague, NN Investment Partners manages around $340 billion in assets for institutions and individual investors worldwide. NN Investment Partners has offices in 15 countries across Europe, North America, Latin America, Asia and also in the Middle East.