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Goldman Sachs wins $70B in asset management for Verizon, Lockheed Martin
CNBC • • business
Key Points:
- Goldman Sachs secured contracts to manage a total of $70 billion in retirement assets for Verizon Communications and Lockheed Martin, including $30 billion in pension assets and $40 billion in Verizon's defined-contribution plans.
- The deals highlight a trend of major U.S. employers outsourcing retirement asset management to specialized firms like Goldman Sachs due to increasing portfolio complexity.
- The competitive market for managing retirement assets involves major players such as Goldman Sachs, BlackRock, Russell Investments, and Mercer, driven by the appeal of steady, long-term fee revenue.
- Goldman aims to grow its stable and recurring revenue streams by expanding its outsourced chief investment officer business, which managed about $480 billion in assets as of March 31.
- The firm's broader asset and wealth management division oversees approximately $3.7 trillion in investments, reflecting its significant role in institutional asset management.
