Posted inFRENELUX

Goldman Sachs to buy NN Investment Partners for €1.6bn

Mergers

Four months after NN Group confirmed it was assessing the future of its asset management business, the Netherlands-headquartered company has inked a deal with Goldman Sachs.

The transaction, worth €1.6bn (£1.36bn, $1.87bn), is expected to close by the end of Q1 2022.

Complementary combination

NN IP offers a broad range of equity and fixed income products, with strong ESG integration across its business.

It has approximately $355bn (£258bn, €303bn) in assets under supervision and roughly $70bn in assets under advice.

The firm has more than 900 employees in 15 countries, who will join Goldman Sachs Asset Management (GSAM) once the deal closes.

In addition to headcount, NN IP will add capabilities and accelerate growth in products such as European equity and investment grade credit, sustainable and impact equity, and green bonds.

The Netherlands will become a “significant location in our European business”, Goldman Sachs said.

“We believe that NN Investment Partners’ expertise will strengthen our fund management and distribution platform across retail and institutional channels in Europe.”

Goldman Sachs has $2.3trn in assets under supervision, globally. The acquisition of NN IP will take the European share of that to more than $600bn.

Broader benefits

The deal will also see GSAM enter a long-term strategic partnership agreement with NN Group to manage a roughly $190bn portfolio of assets.

Goldman Sachs said the partnership will establish GSAM as the largest non-affiliated insurance asset manager in the world, with over $550bn in assets under supervision.

The acquisition will provide a foundation for further growth in the firm’s European fiduciary management business.

Mirrored ambition

David Solomon, chairman and chief executive of Goldman Sachs, 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.”

David Knibbe, chief executive of NN Group, 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.”

Kirsten Hastings

Kirsten is international editor of Expert Investor and International Adviser. She joined Last Word Media in October 2015. Kirsten has a Masters in Financial Journalism from the...

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