Goldman Sachs Wins $70 Billion Retirement Asset Mandates from Verizon and Lockheed Martin
Goldman Sachs has secured asset management mandates worth $70 billion from Verizon Communications and Lockheed Martin, strengthening its position in the fast-growing market for outsourced retirement investment management.
The mandates include approximately $30 billion in pension assets from the two companies and an additional $40 billion in Verizon's defined-contribution retirement plans, including 401(k) assets. The agreements rank among the largest institutional retirement asset management deals announced this year.
The latest wins highlight a growing trend among major U.S. corporations to outsource retirement investment management as pension and retirement portfolios become increasingly sophisticated. Large employers are turning to specialist investment firms to manage assets across both traditional and alternative investments while improving long-term portfolio performance.
For Goldman Sachs, the new mandates represent another step in expanding its asset and wealth management division, an area the bank considers a source of stable and recurring fee income compared with its more cyclical investment banking and trading businesses.
"Large plan sponsors are consolidating responsibilities with one partner with the investment expertise and depth of platform to manage their bespoke needs," said Marc Nachmann, Global Head of Asset and Wealth Management at Goldman Sachs.
Competition for institutional retirement assets has intensified in recent years as global investment managers seek long-term mandates that provide predictable revenue. Firms including BlackRock, Russell Investments, and Mercer continue to compete aggressively for pension and retirement fund management contracts from some of the world's largest employers.
Industry analysts say outsourcing investment management has become increasingly attractive as retirement portfolios expand into private markets, infrastructure, private credit and other alternative asset classes that require specialized expertise.
Goldman Sachs has been steadily growing its Outsourced Chief Investment Officer (OCIO) business as part of its long-term strategy to diversify earnings. As of March 31, the firm's OCIO platform managed approximately $480 billion in client assets, while its broader Asset and Wealth Management division oversaw nearly $3.7 trillion globally.
The Verizon and Lockheed Martin mandates further strengthen Goldman Sachs' institutional investment platform and reinforce its position as corporations increasingly seek experienced investment managers capable of navigating evolving financial markets and delivering long-term retirement outcomes.
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