On Tuesday, Goldman Sachs Asset Management (GSAM), a wing of
The Goldman Sachs Group Inc.
), completed the acquisition of Vermont-based Dwight Asset
Management Company from Old Mutual Asset Management (OMAM). OMAM is
a part of London-based savings group, Old Mutual.
Dwight, a stable value investment firm will now operate as a
wholly owned subsidiary of GSAM and will be renamed as Dwight Asset
Management, a Goldman Sachs Company. The new entity will continue
to be headquartered in Vermont.
The firm specializes in providing fixed income investment
management services including retirement plans, public funds,
corporations and other institutions to institutional clients.
Dwight intends to provide secure and steady returns to investors
like money market funds.
Among various savings investment options available, "stable
value" has been accredited as the most acceptable investment plan
among millions of people on the verge of retirement.
Among Goldman's business segments, Investment Management
includes management and other fees related to the company's assets
Goldman Sachs Asset Management, Private Wealth Management and
management businesses including the company's merchant banking
funds. This segment contributed approximately 12% of the total
revenue earned by the company in first quarter 2012.
The acquisition of Dwight will help Goldman gain significant
market share in the defined contribution investment-only
business. The completion of the deal has also furnished OMAM
with more capital.
Therefore, the amount will be redeployed by the firm into global
distribution and asset management franchise, which would help in
building multi-boutique investment business over the long term.
OMAM manages and expands a varied portfolio of asset managers
serving various institutional and individual investors.
This deal gives Goldman full opportunity to leverage its strong
corporate trust market reputation with Dwight's experience and
proficiency in inventive stable value solutions, which would offer
enhanced investment options to its clients.
Goldman currently retains a Zacks #3 Rank, which translates into
a short-term Hold rating. Among Goldman's peers,
) also retains a Zacks #3 Rank.
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