U.S. investment bank Goldman Sachs (NYSE:GS) is buying Dutch insurer NN Group's asset management arm for $1.98 billion U.S.
The deal is the biggest acquisition by Goldman Sachs since David Solomon became chief executive officer in 2018 and is part of a strategy to make the investment bank’s revenue stream less reliant on earnings from trading and advising on deals.
The Wall Street firm wants to expand in areas such as wealth management and expand its presence in regions outside the United States.
NN Investment Partners (NNIP) has $335 billion U.S. in assets under management, and the acquisition will double the total that Goldman Sachs manages in Europe to more than $600 billion U.S.
Goldman said NNIP's 900 employees will join Goldman Sachs and the Netherlands will become "a significant location" in its European operations.
Goldman is the latest major financial firm to bulk up operations in the Netherlands in the wake of Britain's departure from the European Union, though NNIP is based in The Hague, rather than Amsterdam, the country's main financial centre.
As part of the deal, NN Group, the Netherlands' biggest insurer, has committed to leave its $190 billion portfolio of insurance assets under NNIP management after it joins Goldman Sachs.
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