Goldman Sachs Asset Management (GSAM) has entered into an agreement to acquire smart beta business Westpeak Global Advisors.
In addition to customisable solutions for smart beta investing, Westpeak also brings strategic alliances with global index providers and asset owners.
The transaction reinforces GSAM’s focus on investment innovations across global equity markets and in providing clients the opportunity to tailor their equity exposure to investment factors in a customised approach.
GSAM has also launched an Advanced Beta Strategies platform, which currently represents nearly USD30bn of assets under supervision. The foundation of this new platform will include the smart beta business of Westpeak along with GSAM’s S&P Global Intrinsic Value Index (GIVI) strategies, a set of tax-sensitive equity strategies, and a range of liquid alternative beta strategies. The new platform will be overseen by Armen Avanessians, head of GSAM’s quantitative business.
“GSAM’s acquisition of Westpeak affirms our strong commitment to providing our clients with innovative investment solutions,” say Timothy J. O’Neill and Eric S. Lane, co-heads of the investment management division at Goldman Sachs. “The unique approach and depth of intellectual property that we gain from this acquisition are a strong complement to our existing equity offerings within GSAM.”
“The launch of our Advanced Beta Strategies platform, in conjunction with the acquisition of Westpeak, is critical to address the needs of our clients,” says Craig Russell, head of the institutional client business in the Americas for GSAM. “Our most sophisticated clients are interested in customised investment solutions that allow them to tailor their exposures to markets in a smart, efficient and scalable way. The combination of these Advanced Beta Strategies enhances our ability to help our clients.”
Kal Ghayur, managing partner and chief investment officer of Westpeak, says: "We are pleased to be joining Goldman Sachs Asset Management. Their strong investment and risk management culture, along with their global client reach, will be valued by our clients and are a natural fit with how we work with investors today. The smart beta space is a key area of innovation that will give investors important tools to make their global equity portfolios more efficient.”
As part of this transaction, the entire Westpeak team will join GSAM and will continue to be based in Boulder, Colorado.
Subject to certain conditions, the transaction is expected to close in June 2014.
