Goldman Sachs Group Inc. is scooping up a Chicago tech company that provides digital retirement advice to help employees better understand their retirement options.
Goldman said it will acquire NextCapital, a tech company founded in 2014 that's built a platform that allows financial firms to provide individualized advice to their customers on things like 401(k), IRA and taxable brokerage accounts.
Terms of the deal weren't disclosed. The deal is expected to close in the second half of 2022.
NextCapital raised $85 million in outside funding from investors like FP Credit, Oak HC/FT and IA Capital Group. It last raised a $30 million round in 2020.
Once the deal closes, NextCapital’s platform will be part of the multi-asset solutions business of Goldman Sachs Asset Management, the companies said.
NextCapital, which has more than 100 employees, will remain headquartered in Chicago. Its customers include asset managers and retirement plan sponsors, and its managed account platform currently powers Goldman's workplace retirement solution, which is its retirement program for small and mid-sized businesses.
“Our vision for the future of the retirement savings market is aligned with the team at Goldman Sachs: Technology that can create a differentiated experience combined with a strong culture and focus on clients forms a powerful offering for our clients and the individuals they serve," NextCapital CEO John Patterson said in a statement.
