GSAM launches its new Advanced Beta Strategies platform
NEW YORK, April 22, 2014 – Goldman Sachs Asset Management (“GSAM”) announced today it has entered into an agreement to acquire Westpeak Global Advisors (“Westpeak”), an innovator in the smart beta business. In addition to comprehensive and fully-customizable solutions for smart beta investing, Westpeak also brings valuable 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 unique and customized approach.
GSAM is also pleased to announce the launch of a new Advanced Beta Strategies platform, which currently represents nearly $30B of assets under supervision (as of March 31, 2014). 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,” said 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,” said Craig Russell, head of the institutional client business in the Americas for GSAM. “Our most sophisticated clients are interested in customized 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.”
Armen Avanessians, head of GSAM’s quantitative business said, “The acquisition of Westpeak complements our existing businesses and allows us to offer the full breadth of the alpha-beta continuum.”
Kal Ghayur, Managing Partner and CIO of Westpeak and former chair of the MSCI Index Policy Committee, said: "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.
Goldman Sachs Asset Management is the asset management arm of The Goldman Sachs Group, Inc. (NYSE: GS), which oversees $1.1 trillion in assets under supervision as of March 31, 2014. Goldman Sachs Asset Management has been providing discretionary investment advisory services since 1988 and has investment professionals in all major financial centers around the world. The company offers investment strategies across a broad range of asset classes to institutional and individual clients globally. Founded in 1869, Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals.
Andrea Raphael or Andrew Williams Tel: 212-902-5400