A sign is displayed in the reception area of Goldman Sachs in Sydney, Australia.A sign is displayed in the reception area of Goldman Sachs in Sydney, Australia.

NextCapital is a Chicago-based firm that provides automated advice to corporate retirement plan participants.

The terms of the deal were not disclosed in the release, but the deal will be completed in the second half of the year. According to the Financial Times, the acquisition is one of the top five asset management deals Goldman has done.

Goldman and rivals have made acquisitions in both asset management and fintech in recent years. Money management is a steadier revenue source than trading and other Wall Street activities, which is why the banks are jockeying to deepen relationships with corporate employees.

Goldman CEO David Solomon said in the release that the acquisition furthers their objective of building compelling client solutions in asset management.

In 2020, NextCapital said it had raised $85 million in venture funds, and that it was founded in 2014.

Goldman can now offer ways for employees to improve retirement outcomes. The bank has $350 billion in assets under supervision for defined benefit and defined contribution plans.

Employers are looking to provide their employees tailored solutions and advice that can better support individual saving and investing needs.