Goldman Sachs said on Thursday it will buy Dutch insurer NN Group’s asset management business NN Investment Partners (NNIP) for around €1.6 billion in cash.
The deal is the biggest acquisition by Goldman since David Solomon became chief executive in 2018.
NNIP is based in The Hague with approximately $355 billion in assets under supervision and approximately $70 billion in assets under advice.
Goldman said it has $2.3 trillion in assets under supervision globally and the transaction will bring assets under supervision in Europe to over $600 billion “aligning with the firm’s strategic objectives to scale its European business and extend its global reach.”
As part of the deal, Goldman Sachs Asset Management will enter into a long-term strategic partnership agreement with NN Group to manage $190 billion of assets.
“The partnership will establish the firm as the largest non-affiliated insurance asset manager globally, with over $550 billion in assets under supervision, and the acquisition will provide a foundation for further growth in the firm’s European fiduciary management business, building on the success of its platform in the United States and United Kingdom,” said Goldman.
Goldman said NNIP offers a broad range of equity and fixed income products, with a strong Environmental, Social and Governance (ESG) integration across its business.
With a heritage dating back almost 175 years, NNIP employs more than 900 people in 15 countries.
NNIP employees will join Goldman Sachs Asset Management following the closing of the transaction, with the Netherlands becoming a “significant location” in Goldman’s European business.
“We believe that NN Investment Partners’ expertise will strengthen our fund management and distribution platform across retail and institutional channels in Europe and support us in delivering long-term value to clients,” said Goldman.
“NN Investment Partners is highly complementary to Goldman Sachs Asset Management’s existing European footprint and will add new capabilities and accelerate growth in products such as European equity and investment grade credit, sustainable and impact equity, and green bonds.”
Goldman Sachs 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.”
NN Group CEO David Knibbe 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.”