Goldman Sachs Asset Management (GSAM) has reached a deal to purchase outsourced-CIO (OCIO) provider Pacific Global Advisors from Pacific Life Insurance Company, according to a GSAM spokesperson.
Pacific Global Advisors specializes in corporate pensions, CIO’s 2015 OCIO Buyer’s Guide showed, with full discretion over $2.84 billion in retirement assets across seven North American clients.
GSAM—one of the largest players in the market—said it had $57 billion under supervision as of March 31. The New York-based division of Goldman Sachs group exercised full authority as an OCIO over $31.3 billion from 36 clients, the September 30, 2014, buyer’s guide stated. Like its latest acquisition, GSAM has found greatest success with corporate defined benefit clients, representing more than half its discretionary assets under management.
Pacific Global Advisors’ “investment philosophy, expertise, and client relationships are a great strategic fit with our current business,” said Timothy O’Neill and Eric Lane, co-heads of the investment management division at Goldman Sachs. “This transaction reinforces our focus on our investment outsourcing solutions business, and in particular, our pension practice.”
Key members of the acquired firm’s management team will join GSAM under the agreement.
“Subject to certain customary conditions,” the announcement said, “we aim to close the transaction by mid-year 2015.”
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