Goldman Sachs Asset Management announced it will buy Dwight Asset Management, a Vermont-based stable value money manager, from Old Mutual Asset Management. The acquisition is part of Goldman Sachs’ efforts to establish a leading position in the defined contribution investment-only business.
“GSAM’s acquisition of Dwight increases our already strong commitment to the defined contribution business and enables us to deliver more investment solutions to help DC plan participants preserve and grow their hard earned retirement savings,” said Eric S. Lane and Timothy J. O’Neill, co-heads of the Investment Management Division at Goldman Sachs. “Many of our clients are focused on stable value as an important asset class for DC plans and Dwight has been an innovator in this space.”
Goldman Sachs has grown its DC business over the past several years. Dwight is a pioneer in the $540 billion stable value market.
"For OMAM, the transaction will free up capital to redeploy into our global distribution and asset management franchise,” said Peter L. Bain, Old Mutual’s CEO. “We remain committed to building our multi-boutique business around long-term, institutionally-driven, active asset management."
Dwight Asset Management Company LLC provides fixed income investment management services for institutional clients, including retirement plans, corporations, public funds, insurance companies, financial institutions, endowments, foundations, and Taft-Hartley plans. Dwight, which is headquartered in Burlington, Vermont, manages and advises for approximately $42 billion as of Dec. 31, 2011.
Old Mutual Asset Management is a global multi-boutique investment organization, managing and growing a diverse portfolio of asset managers that serve institutional and individual investors around the world. The assets under management of OMAM's 17 affiliated investment firms were $224 billion as of Sept. 30, 2011.
Goldman Sachs Asset Management is the asset management arm of The Goldman Sachs Group, Inc., which managed $828 billion as of Dec. 31, 2011.