Goldman Sachs announced on Thursday that it will manage a total of $70 billion in retirement assets for Verizon and Lockheed Martin, which includes approximately $30 billion in pension assets and $40 billion in defined-contribution retirement assets, such as 401(k) plans.
This development reflects a growing trend among major U.S. employers to delegate the management of complex retirement portfolios to external firms like Goldman Sachs, as these portfolios increasingly require specialized expertise in both public and private markets.
The competition in the multitrillion-dollar retirement asset management sector is intense, with firms like BlackRock, Russell Investments, and Mercer also vying for these lucrative long-term institutional mandates that provide stable fee revenue.
Marc Nachmann, Goldman's global head of asset and wealth management, noted that large plan sponsors prefer to consolidate their responsibilities with a single partner that possesses the necessary investment expertise.
As of March 31, Goldman's outsourced chief investment officer business managed about $480 billion in assets, while its overall asset and wealth management division oversees approximately $3.7 trillion in investments. This strategic move is expected to enhance Goldman's revenue stability, contrasting with the more volatile nature of its trading and investment banking operations