Chicago-based fintech NextCapital specializes in delivering automated investment advice to corporate retirement plan holders. And within a few months, NextCapital will be delivering its robo-advisor services under the guidance of its new owner, Goldman Sachs.
Terms of the NextCapital acquisition have not yet been released, though the transaction is likely to take place as early as the next financial quarter. It is also understood that this purchase is among Goldman Sachs’ top five asset management deals in its history.
Goldman Sachs’ Chief Executive Officer David Solomon situated the purchase as critical to the company’s ongoing mission. “This acquisition furthers our strategic objective of building compelling client solutions in asset management and accelerating our investment in technology to serve the growing defined contribution market,” Solomon said in a statement.
The purchase comes at a time when major investment firms, including Goldman Sachs competitor JPMorgan Chase, are rushing to snap up fintech firms that can boost their digital offerings. Startups working in personal money management like NextCapital are seen as particularly valuable, as market experts agree the users of such platforms tend to represent a steady long-term revenue source.