Investors

Goldman Sachs Announces Purchase of NN Investment Partners

Published on: 13 April 2022 07:25 PM
by KnowESG

Goldman Sachs, the multinational investment banking company, announced it acquired NN Investment Partners, the asset management company based in the Netherlands, for €1.7 billion. The purchase will help put sustainability as an investment priority. It also adds scale to the European client franchise and extends leadership in insurance asset management.

The Netherlands will become a significant location in Goldman Sachs' European business and a centre of excellence for sustainability in public market investing following the acquisition. When NN Investment Partners is incorporated into Goldman Sachs Asset Management, over 900 employees will join the Goldman Sachs family.

Goldman Sachs' assets after the purchase will reach a total of approximately $2.8 trillion and maintain its global position as one of the five active asset managers with franchises in fixed income, liquidity, insurance asset management, alternatives, and equities. The acquisition will also bring assets under supervision in Europe to over $600 billion to scale European business and expand its international reach.

The purchase helps Goldman Sachs bolster its platform and offers an expanded product range and dedicated services to clients internationally, leveraging combined expertise to deliver investment solutions at scale across all asset categories.

NN Investment Partners will bring new capabilities and expedite growth in products, including European equity and investment-grade credit, sustainable and impact equity and green bonds to Goldman Sachs Asset Management's existing European footprint.

NN Investment Partners has also proved its efficiency in incorporating environmental, social and governance (ESG) factors into its product range, including around 90 per cent of assets under supervision, helping Goldman Sachs complement its existing investment processes, allowing ESG integration across its product range.

David Solomon, Chairman and Chief Executive Officer of Goldman Sachs, said: “This acquisition advances our commitment to putting sustainability at the heart of our investment platform. It adds scale to our European client franchise and extends our leadership in insurance asset management. We are excited to welcome the talented team at NN Investment Partners, a centre of excellence in sustainable investing, to Goldman Sachs, and together we will focus on delivering long-term value to our clients and shareholders.”

The transaction entails Goldman Sach Asset Management entering into a long-term strategic partnership with NN Group to manage around $180 billion in assets. The acquisition will also strengthen its global position as one of the largest non-affiliated insurance asset managers with more than $550 billion in assets under supervision.

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