Goldman Sachs Asset Management to Acquire Stable Value Business from
Deutsche Asset & Wealth Management
GSAM Increases Focus on Defined Contribution Business
NEW YORK -- September 25, 2013
Goldman Sachs Asset Management (“GSAM”) announced today it has entered into an
agreement with Deutsche Asset & Wealth Management (“DeAWM”) to acquire DeAWM’s
stable value* business, with total assets under supervision of $21.6 billion
as of June 30, 2013. The transaction represents the latest step by GSAM to
grow its defined contribution (DC) franchise following last year’s acquisition
of Dwight Asset Management (“Dwight”), a premier stable value asset manager
based in Burlington, VT.
“GSAM’s acquisition of DeAWM’s stable value business affirms our strong
commitment to providing defined contribution plan participants with capital
preservation investment options,” said Eric S. Lane and Timothy J. O’Neill,
co-heads of the Investment Management Division at Goldman Sachs. “The expert
talent and potential client relationships that we gain from this transaction
will complement our existing stable value business.”
Jerry W. Miller, Head of DeAWM Americas, said: "We are investing significantly
in our Americas business and are committed to providing clients with an
enhanced range of investment solutions across fixed income, equity and
alternative asset classes. As we focus on growing the rest of our platform, we
have opted not to participate in the consolidation of the stable value sector.
Consequently, we are pleased with the sale of our stable value business to one
of the leaders in the space."
This transaction follows GSAM’s July 2013 announcement of its intent to
establish a new stable value collective trust.
As part of this transaction, John Axtell, DeAWM’s Head of Stable Value, and
other key members of the DeAWM stable value management team will join GSAM.
Prior to the closing, DeAWM will be working with clients to ensure a seamless
transition to GSAM or other stable value managers. GSAM currently manages over
$55 billion in defined contribution mandates, including more than $34 billion
in stable value assets under supervision.**
Subject to certain conditions, the transaction is expected to close during the
first quarter of 2014.
Goldman Sachs Asset Management is the asset management arm of The Goldman
Sachs Group, Inc. (NYSE:GS), which oversees $955 billion in assets under
supervision as of June 30, 2013. Goldman Sachs Asset Management has been
providing discretionary investment advisory services since 1988 and has
investment professionals in all major financial centers around the world.The
company offers investment strategies across a broad range of asset classes to
institutional and individual clients globally.Founded in 1869, Goldman Sachs
is a leading global investment banking, securities and investment management
firm that provides a wide range of financial services to a substantial and
diversified client base that includes corporations, financial institutions,
governments and high-net-worth individuals.
With $1.2 trillion (€946 billion) of assets under management (as at June 30,
2013), Deutsche Asset & Wealth Management*** is one of the world's leading
investment organizations. Deutsche Asset & Wealth Management offers
individuals and institutions traditional and alternative investments across
all major asset classes. It also provides tailored wealth management solutions
and private banking services to high-net-worth individuals and family offices.
*Stable value funds are capital preservation investment options available in
U.S. retirement savings plans. They invest in a high quality, diversified
fixed income portfolio that is protected against interest rate volatility by
wrap contracts from banks and insurance companies.
**Source: GSAM, June 30, 2013. Assets Under Supervision (AUS) includes client
accounts for which Goldman Sachs does not have full discretion.
***Deutsche Asset & Wealth Management is the brand name of the Asset & Wealth
Management division of the Deutsche Bank Group. The legal entities offering
products or services under the Deutsche Asset & Wealth Management brand are
listed in contracts, sales materials and other product information documents.
Goldman Sachs Asset Management
Andrea Raphael, 212-357-0025
Deutsche Asset & Wealth Management
Renee Calabro, 212-250-5525
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