Full Breakdown
Goldman Sachs Wins $70 B Retirement-Asset Outsourcing Deal with Verizon and Lockheed Martin
7/10/2026, 3:19:29 PM
Deal Overview
Goldman Sachs announced on Thursday that its asset-management arm will serve as the outsourced chief investment officer for the retirement plans of Verizon Communications and Lockheed Martin. The combined mandates total roughly $70 billion in assets: about $30 billion in defined-benefit (pension) assets and $40 billion in defined-contribution (401(k)) assets. The contracts place the two corporations among a growing list of large U.S. employers that are shifting pension-investment responsibility to external managers.
Industry Context and Prior Outsourcing Activity
The agreements reflect a broader wave of “pension risk transfers.” Verizon previously off-loaded $5.9 billion in liabilities covering 56,000 retirees to RGA Reinsurance Co. and Prudential Insurance Co. of America in 2024. Lockheed Martin transferred $4.9 billion to Athene Annuity & Life Assurance Co. in 2021, an additional $4.3 billion in 2022, and $943 million in 2025-2026 to other insurers. These moves illustrate how major plan sponsors are increasingly seeking specialized investment expertise for both public- and private-market exposure.
Scale and Financial Implications
Goldman’s outsourced-CIO platform managed $480 billion in assets as of March 31, while its broader asset-and-wealth-management division oversees roughly $3.7 trillion. Adding the Verizon-Lockheed mandates expands Goldman’s fee-based, recurring-revenue stream, a strategic counterbalance to its more volatile trading and investment-banking operations.
Why It Matters for Goldman Sachs
The multitrillion-dollar retirement-asset market is fiercely contested among firms such as BlackRock, Russell Investments and Mercer. Securing two of America’s largest corporate sponsors bolsters Goldman’s market share and underscores its capacity to deliver “customized public and private market investment solutions,” a claim the firm cites as a differentiator in a fee-driven business model.
Official Statements from Goldman Sachs
Goldman’s global head of asset and wealth management, Marc Nachmann, said the deals illustrate a trend of large plan sponsors consolidating responsibilities with a single partner that possesses the depth of platform and expertise to meet bespoke needs. He added that the mandates confirm Goldman’s ability to provide tailored investment solutions supported by evolving technology, deep experience and purpose-built infrastructure.
Market Reaction
Following the announcement, Goldman Sachs shares rose amid intraday volatility, propelled by the “highly lucrative pension asset management mandate.” Analysts upgraded earnings expectations ahead of the company’s second-quarter earnings release scheduled for next week, citing the new contracts as evidence of growing, stable fee revenue.
Criticism & Opposition
Public sources did not provide any dissenting commentary or criticism regarding the outsourcing arrangements.
Conflicting Reports & Gaps
All available reports present a consistent picture of the deal size, asset split and prior pension-risk transfers; no contradictory figures were identified.
Verbatim Quotes
- “Large plan sponsors are consolidating responsibilities with one partner with the investment expertise and depth of platform to manage their bespoke needs,” — Marc Nachmann, Global Head of Asset and Wealth Management, Goldman Sachs
- “We believe these mandates affirm our ability to deliver customized public and private market investment solutions for the world’s largest retirement plans, supported by continually evolving technology, deep experience and specifically designed infrastructure.” — Marc Nachmann, Goldman Sachs
Upcoming Earnings Release
Goldman Sachs is slated to report its second-quarter earnings next week, with analysts expecting an earnings-per-share beat driven in part by the newly announced retirement-asset contracts.
