Goldman held takeover talks with Northern Trust: Semafor

Goldman held takeover talks with Northern Trust: Semafor

Goldman Sachs CEO David Solomon has been actively exploring significant acquisitions to drive growth for the firm, following the resolution of a costly consumer banking retreat. According to sources familiar with the matter, Solomon engaged in takeover talks with $25 billion Northern Trust earlier this year and nearly clinched a $6 billion deal for private-markets specialist Cliffwater [1].

Northern Trust, with its $1.3 trillion in client assets, could significantly boost Goldman's total client base by 40% and bring in a substantial asset-servicing business that serves as a ledger for much of Wall Street [2]. However, discussions with Cliffwater, a consultant-turned-money manager with $120 billion in assets, did not materialize due to price disagreements [1]. Recently, Cliffwater sold a stake to TPG and Singapore’s Temasek, making any future deal with Goldman Sachs unlikely [2].

Goldman Sachs' stock has reached all-time highs, up nearly 50% from a year ago, providing the firm with valuable currency for potential acquisitions. Solomon has indicated that while the bar is high for any deals, he is open to the possibility [2].

Goldman Sachs' history of acquisitions has been mixed. Notable deals include the 1981 purchase of J. Aron, which brought a leading commodities-trading business and future leaders like Lloyd Blankfein and Gary Cohn. However, other acquisitions, such as the $6.5 billion acquisition of NYSE floor specialist Spear, Leeds & Kellogg in 2000, and its foray into consumer banking, have not been as successful [2].

Northern Trust, currently in play, could present a new opportunity for Goldman Sachs to expand its asset management arm and gain a significant foothold in the asset-servicing business. The firm is also exploring M&A opportunities in the low-fee ETFs market, where it has struggled to grow [2].

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_FWN3TI19U:0-goldman-sachs-is-looking-for-big-acquisitions-semafor/
[2] https://finance.yahoo.com/news/goldman-sachs-looking-big-acquisitions-220317438.html