Goldman Sachs Asset Management (GSAM) 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, a premier stable value asset manager based in Burlington, VT.
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.