Goldman Sachs Asset Management Buys Deutsche Asset & WM's Stable Value Business

Eliane Chavagnon

26 September 2013

Goldman Sachs Asset Management has entered into an agreement to acquire Deutsche Asset & Wealth Management's stable value business, which has total assets under supervision of $21.6 billion as of June 30, 2013. The transaction is expected to close during the first quarter of 2014.

The move represents the latest step by GSAM to grow its defined contribution business following last year’s acquisition of Burlington, VT-based Dwight Asset Management.

“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,” said Jerry Miller, head of Deutsche Asset & Wealth Management, Americas.

“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,” Miller said.

John Axtell, head of stable value at Deutsche Asset & Wealth Management, and other members of the stable value management team, will join GSAM. Deutsche said it will work 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 over $34 billion in stable value assets under supervision.