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Goldman Sachs on Thursday announced the completion of an agreement to purchase Dutch asset management firm NN Investment Partners (NNIP) from NN Group N.V.
In a press release dated August 19, Goldman Sachs Group Inc (NYSE: GS) reveals that the €1.7 billion ($1.98 billion) deal is expected to be completed by the end of Q1 2022.
The purchase is the largest the company a made since onboarding Chairman and CEO David Solomon in 2018. It is in line with the investments firm’s goal to diversify its revenue stream beyond global markets and financial advice.
CEO David Solomon said:
“This acquisition allows us to accelerate our growth strategy and broaden our asset management platform. NN Investment Partners offers a leading European client franchise and an extension of our strength in insurance asset management. Across NN Investment Partners’ offerings they have been successful in integrating sustainability which mirrors our own level of ambition to put responsible investing and stewardship at the heart of our business. We look forward to partnering with the team at NN Investment Partners as we focus on delivering long-term value to our clients and our shareholders.”
NNIP, one of the largest asset managers in Europe, is headquartered in The Hague and manages assets averaging $355 billion with a further $70 billion under advice. Three-quarters of its assets under supervision are Environmental, Social, and Governance (ESG) integrated. It has a variety of equity and fixed income products. It has a staff of over 900 in 15 countries all of whom will join Goldman Sachs Asset Management once the deal is closed. Goldman Sachs is confident that the NNIP team will add value to its products such as ‘European equity and investment-grade credit, sustainable and impact equity, and green bonds’.
The merging of the two firms will also double Godman Sachs’ assets under management in Europe to over $600 billion.
Commenting on the deal David Knibbe, Chief Executive Officer of NN Group, said:
“NN Group and NN Investment Partners have a longstanding and successful shared history. We value this strong and constructive relationship that we have and we look forward to further building on it in a new form. This transaction brings together two international asset managers, each with many decades of investment experience. We have found a strong and professional partner in Goldman Sachs, providing an environment in which our NN Investment Partners colleagues can continue to thrive, while the combined investment expertise and scale will enhance the service offering to NN Investment Partners’ clients, including NN Group. This transaction will also give NN Group greater optionality to develop a broader range of asset management propositions for our customers. Our approach and ambitions around ESG will remain unchanged and Goldman Sachs shares our commitment to responsible investing. On behalf of the Management Board of NN Group, I would like to thank our colleagues at NN Investment Partners for their drive, commitment and continuing focus on clients.”