Goldman Sachs Asset Management (GSAM) is set to buy Dutch asset manager NN Investment Partners (NN IP) for €1.6bn.
The transaction is expected to close by the end of the first quarter of 2022 subject to regulatory and other approvals and conditions.
GSAM beat Frankfurt-based asset manager DWS in bidding for NN IP. The acquisition is Goldman Sachs' largest since David Solomon became chief executive in 2018.
NN Investment Partners' expertise will strengthen our fund management and distribution platform across retail and institutional channels in Europe."
NN Investment partners has $355bn of assets under management, 75% of which are ESG integrated.
The Dutch business' employees will join GSAM following the closing of the transaction and GSAM expect the Netherlands to become a "significant location" in their European operations.
"We believe that NN Investment Partners' expertise will strengthen our fund management and distribution platform across retail and institutional channels in Europe and support us in delivering long-term value to clients," GSAM said in a press release.
$190bn of NN IP's AUM is managed on behalf of its insurance parent company. As a result of the deal, the parent company NN Group will become a client of GSAM.
GSAM already has $2.3tn in assets under supervision, of which $550bn is managed for insurers and $600bn is in Europe.
Solomon 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.
"We look forward to partnering with the team at NN Investment Partners as we focus on delivering long-term value to our clients and our shareholders."
David Knibbe, CEO of NN Group, added: "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."
First published by our sister title Investment Week