Prime Highlights-
- Goldman Sachs won deals to manage a combined $70 billion in retirement assets for Verizon Communications and Lockheed Martin.
- The mandates include about $30 billion in pension assets and $40 billion in Verizon defined-contribution retirement assets.
Key Facts-
- Goldman’s outsourced chief investment officer business held about $480 billion in assets as of March 31.
- The firm’s broader asset and wealth management division oversees roughly $3.7 trillion in investments.
Background-
Goldman Sachs has won deals to manage a combined $70 billion in retirement assets for Verizon Communications and Lockheed Martin, marking one of the larger recent wins in the fast-growing market for outsourced corporate investing.
The mandates include about $30 billion in pension assets for the two companies along with $40 billion in Verizon defined-contribution retirement assets, typically known as 401(k) accounts, according to Goldman.
The deals reflect how large American employers are increasingly turning to outside firms to manage retirement assets as portfolios grow more complex and require expertise across both public and private markets.
Competition in the multitrillion-dollar retirement asset market remains strong, with firms including Goldman, BlackRock, Russell Investments and Mercer all vying for long-term institutional mandates that generate steady fee income.
By expanding this business, Goldman aims to grow the share of its revenue that comes from stable, recurring sources, offering more consistency compared with its trading and investment banking operations.
Marc Nachmann, Goldman’s global head of asset and wealth management, said large plan sponsors are increasingly consolidating responsibilities with a single partner that has the investment expertise and platform depth needed to manage their specific requirements.
Goldman’s outsourced chief investment officer business held about $480 billion in assets as of March 31, while the firm’s broader asset and wealth management division oversees roughly $3.7 trillion worth of investments.
The new mandates add to Goldman’s growing presence in the outsourced investment management space, positioning the firm to capture a larger share of a market that continues to expand as employers seek specialized expertise to handle increasingly complex retirement portfolios.