April 2 (Reuters) - Goldman Sachs said on Thursday it has completed the acquisition of active exchange-traded fund provider Innovator Capital Management, expanding the Wall Street bank's presence in the fast-growing active ETF segment.
Active ETFs are among the fastest-growing areas of asset management, attracting investors with lower costs and flexible strategies at a time when returns from some passive index products have lagged.
The bank said in December that it would acquire Innovator Capital,
which managed 171 ETFs with about $31 billion in assets, in a deal worth about $2 billion.
"With this acquisition, we have taken a transformative step in our commitment to provide sophisticated investment solutions that are designed to deliver specific outcomes for investors through market cycles," Goldman Sachs Chief Executive Officer David Solomon said.
Following the deal, Innovator's co-founders Bruce Bond and John Southard will join Goldman Sachs as advisory directors, the firm said, while Chief Investment Officer Graham Day and Head of Distribution Trevor Terrell will join as partners.
More than 70 Innovator employees will join the firm, Goldman Sachs said.
Goldman Sachs Asset Management now oversees about 240 ETFs globally, with total ETF assets under supervision of $90 billion, the firm said.
(Reporting by Prakhar Srivastava in Bengaluru and Saeed Azhar in New York; Editing by Tasim Zahid)
