Goldman Sachs Group Update
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Goldman Sachs’ asset management department has agreed to acquire the investment management department of Dutch insurance company NN Group for approximately 1.6 billion euros. This is the largest acquisition by the Wall Street bank since David Solomon became CEO in 2018.
NN Investment Partners manages US$355 billion in assets. This transaction will significantly expand Goldman Sachs’ influence in the European asset management field and is the latest example of the consolidation sweeping the entire industry.
This also further shows that Salomon Bank is determined to develop this American bank in areas that charge regular fees such as asset and wealth management, while reducing its reliance on volatile businesses such as stock and bond trading.
Solomon told the Financial Times that the acquisition “helped us expand our asset management platform, especially by strengthening our position in Europe.”
Goldman Sachs Asset Management, which has $2.3 trillion in regulated assets, defeated Frankfurt-based asset management company DWS in the quarter Last round Bid won by NN Investment Partners. UBS Asset Management, Janus Henderson and American insurance company Prudential Financial are also interested.
“Everything NN has done, we have done, and this is increasing and accelerating our growth… and continue to help us scale up,” Solomon said.
The global asset management company is In pursuit of scale To protect profits from rising costs and falling expenses. Solomon said that if it can accelerate its growth, Goldman Sachs “definitely will seriously consider” further acquisitions in the asset management area.
“The asset management industry continues to consolidate,” he added. “If you look at most of the leading players, what most of them have is that their business is global and scaled.”
Of the assets managed by NN Investment Partners, US$190 billion is managed on behalf of its insurance parent company, and the rest are managed by external investors.
NN Group will now become a customer of GSAM, bringing the total amount of its outsourcing insurance consulting business under its management to US$550 billion. “Becoming a partner of NN Group’s future insurance assets is an attractive opportunity for us,” Solomon said.
NN Investment Partners has a strong position in ESG investment, especially in the areas of green bonds, impact equity and sustainable equity. “We are focused on responding to customer needs and desires for ESG,” Solomon said.
Goldman Sachs Report record The second quarter came from asset management revenue, but only about a quarter of it came from managing assets on behalf of customers-this is the part of the business it wants to expand.
Most of the income comes from investments made by Goldman Sachs with its own capital, and the bank is trying to reduce this source of income.
As of the end of June, the bank’s total regulated assets were US$2.3 trillion, up from US$2.2 trillion three months ago. Goldman Sachs outlined its goals for the next five years in 2020 to raise $150 billion for alternative asset management tools, including private equity, credit, and real estate. Since the beginning of 2020, the bank’s net inflow of asset management has exceeded US$70 billion.
The Hague-based NN Group faced pressure last year from the radical hedge fund Elliott Management to increase returns and simplify its operations.It said in April it was Consider choice Investment management business, including mergers, joint ventures or partial divestments of the division, which has more than 900 employees in 15 countries.
The entire insurance industry is struggling to cope with the long-term low interest rates and higher capital requirements under the Solvency II rules, which has prompted groups to weigh their capital allocation and exit the sub-asset management department.
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