1.6 billion euros! Goldman's biggest acquisition since Solomon took office has emerged

Goldman Sachs has agreed to acquire NN Investment Partners, the investment arm of Dutch insurer NN Group, for about 1.6 billion euros. This is the largest M&A deal since David Solomon became CEO of Goldman Sachs in 2018.

NNIP is a wholly owned subsidiary of NN Group, the largest life insurance company in the Netherlands, and currently manages about $355 billion in assets. By comparison, Goldman Sachs currently manages about $2.3 trillion in assets. Of the assets under management by NN Investment, $190 billion is managed on behalf of its insurance parent company, while the rest is managed by outside investors.

The deal will triple Goldman's total assets under management in Europe to $600 billion. Under the agreement, 900 employees of NNIP will join Goldman Sachs and the Netherlands will become a "key location" for its European operations.

The two sides also reached a 10-year strategic cooperation agreement, and Goldman Sachs will provide asset management services for NN Group's $190 billion portfolio.

The Financial Times reported that Goldman Sachs beat Frankfurt-based asset manager DWS in the final round of bidding. Including UBS Asset Management, Janus Henderson and U.S. insurer Prudential Financial are also interested in the deal.

NN Group came under pressure last year from hedge fund Elliott Management, which asked it to improve returns and streamline its operations. The company said in April that it was considering options for its investment management business, including a merger, joint venture or partial divestiture of the division.

Asset managers around the world are currently pursuing scale to protect profits from rising costs and falling expenses. Goldman Sachs CEO David Solomon said in an interview that goldman Sachs "will definitely seriously consider" further acquisitions in the asset management space if it can accelerate scale growth.

<h3>David Solomon</h3>

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