NextCapital was a fintech company before fintech became cool. Founded in 2013 (or 2014 depending on the source), the Chicago-based company has raised over $82 million in funding over its lifetime from investors such as FinTech Collective and Oak HC/FT. The move is an interesting one as the investment giant has for years been strategically scooping up fintech companies. Again, according to Crunchbase, Goldman Sachs has acquired 27 companies over time. Last September, it announced it was acquiring buy now, buy later fintech GreenSky for $2.24 billion in an all-stock deal that was a reflection of its continued push into consumer finance.
In the case of NextCapital, which uses algorithms and automation to allow users to invest in retirement funds, Goldman didn’t say how much it was shelling out. It also noted that Goldman’s intent to buy NextCapital follows several moves by multiline incumbents to diversify into steadier income streams and to build out their own stacks in wealth and asset management.