Major Retirement Deals for Goldman Sachs
Goldman Sachs said Thursday that it secured mandates to manage a combined $70 billion in retirement assets for Verizon Communications and Lockheed Martin. The announcement is one of the larger recent moves in the expanding market for outsourced corporate investment management.
Verizon and Lockheed Assets Included
The mandates cover about $30 billion in pension assets for Verizon and Lockheed Martin. Goldman will also manage $40 billion in Verizon defined-contribution retirement assets, which are typically structured as 401(k) plans.
Large Employers Turn to Outside Managers
The agreements reflect a broader trend among major U.S. companies. As retirement portfolios become more complex and require expertise across public and private markets, large employers are increasingly assigning investment responsibilities to external asset managers.
A Competitive Multitrillion-Dollar Market
The retirement asset management market is highly competitive, with firms such as Goldman Sachs, BlackRock, Russell Investments and Mercer all seeking large institutional mandates. These contracts are attractive because they can provide long-term and steady fee revenue.
Goldman Seeks More Recurring Revenue
By expanding its retirement and outsourced investing business, Goldman Sachs is working to increase the portion of its revenue that is stable and recurring. That strategy contrasts with the firm’s trading and investment banking units, which are generally more sensitive to market cycles.
Nachmann Highlights Consolidation Trend
Marc Nachmann, Goldman’s global head of asset and wealth management, said: “Large plan sponsors are consolidating responsibilities with one partner with the investment expertise and depth of platform to manage their bespoke needs.”
Scale of Goldman’s Investment Platform
Goldman’s outsourced chief investment officer business managed about $480 billion in assets as of March 31. The firm’s wider asset and wealth management division oversees approximately $3.7 trillion in investments.
Outsourcing Becomes a Strategic Growth Area
The Verizon and Lockheed Martin mandates strengthen Goldman’s position in a segment where scale, investment breadth and institutional relationships are increasingly important. The deals also show how retirement plan sponsors are seeking fewer partners with broader capabilities to handle long-term investment needs.
