The transaction will enable GSAM to expand its defined contribution (DC) franchise following last year’s acquisition of Dwight Asset Management based in Burlington, Vermont.
Commenting on the acquisition, Goldman Sachs investment management division co-heads Eric Lane and Timothy O’Neill said the acquisition will enable the company to offer defined contribution plan participants with capital preservation investment options.
"The expert talent and potential client relationships that we gain from this transaction will complement our existing stable value business," the co-heads added.
GSAM said that the transaction follows GSAM announcement in July 2013, to set up a new stable value collective trust.
Under the terms of the transaction, DeAWM’s stable value head John Axtell and other key members of DeAWM stable value management team will join GSAM.
The acquired entity will work with clients to ensure a seamless transition to GSAM or other stable value managers.
The transaction, which is expected to complete during the first quarter of 2014, is pending receipt of concerned regulatory approvals.
Since 1988, GSAM has been offering discretionary investment advisory services, and delivers investment strategies across an array of asset classes to institutional and individual clients globally.
