The trend for consolidation within the asset management industry continues as Goldman Sachs announced its completion of the €1.7 billion acquisition of Netherlands-based NN Investment Partners first announced last year in August.

The Dutch firm, known for its ESG products, is to be absorbed into Goldman Sachs Asset Management (GSAM) and will likely lose its name.

The deal will bring GSAM’s AUM to approximately $2.8trn and brings its AUM in Europe to over $600bn.

Goldman Sachs chairman and chief executive David Solomon said: “This acquisition advances our commitment to put sustainability at the heart of our investment platform. It adds scale to our European client franchise and extends our leadership in insurance asset management.

“We are excited to welcome the talented team at NN Investment Partners, a centre of excellence in sustainable investing, to Goldman Sachs and together we will focus on delivering long-term value to our clients and shareholders.”

The US-based behemoth is rumoured to also have its eye on UK-based platform Nucleus as another acquisition target

As active managers struggle to compete with the continued growth of passive players, combining forces seems to be the main route to build assets. Franklin Templeton’s acquisition of multi-boutique Legg Mason in 2020 was a move that not only increased the US firm’s AUM but also gave its investors to a wider range of products that only smaller boutique firms can offer.