Goldman Sachs lands $70 billion in asset management mandates from Verizon, Lockheed Martin

Goldman Sachs has won asset management mandates totaling about $70 billion from Verizon and Lockheed Martin, according to reports, giving the Wall Street firm a sizable boost in the competitive business of managing retirement plan investments for major corporations.

The assignments, reported by CNBC and several pension industry publications, involve investment oversight for retirement assets connected to Verizon Communications Inc. and Lockheed Martin Corp. The mandates are described as outsourced chief investment officer, or OCIO, arrangements, a structure in which a company hires an outside manager to help oversee investment strategy, portfolio construction and risk management.

The reported wins underscore the growing importance of Goldman Sachs Asset Management as the firm looks beyond traditional investment banking and trading for steadier fee-based revenue. Corporate pension plans and retirement programs can represent long-term relationships for asset managers, particularly when they involve large pools of defined benefit and defined contribution assets.

Major win in retirement outsourcing

For employers, outsourcing investment functions can reduce the burden on internal teams and retirement plan committees, especially as markets become more complex and pension obligations remain sensitive to interest rates, equity performance and liability assumptions. Large companies often retain fiduciary responsibility while delegating day-to-day investment decisions or implementation to an outside specialist.

Goldman Sachs has been building its OCIO and retirement capabilities as institutional clients seek broader services from a smaller group of providers. In such arrangements, an asset manager may advise on asset allocation, select external managers, manage liquidity and help align portfolios with the needs of pension beneficiaries and plan participants.

Verizon and Lockheed Martin are among the largest U.S. employers with significant retirement obligations, making the reported mandates notable within the pension management industry. The deals also come as many corporate pension sponsors have sought to de-risk their plans, shift assets toward liability-driven strategies or streamline governance around retirement investments.

Asset management remains a strategic focus

The reported $70 billion total would represent a high-profile addition to Goldman Sachs’ institutional asset management platform. While investment banking revenue can fluctuate with deal activity and market conditions, asset management typically generates recurring fees tied to assets under supervision or management, making it an attractive area for diversified financial firms.

Competition for OCIO mandates is intense, with banks, investment consultants and large asset managers all seeking to win business from corporate plans, endowments, foundations and public institutions. The Verizon and Lockheed Martin assignments signal that large employers remain willing to hand significant portions of retirement investment oversight to outside firms with scale, technology and market expertise.

Specific terms of the mandates, including fee arrangements and detailed investment responsibilities, were not disclosed in the initial reports. Goldman Sachs, Verizon and Lockheed Martin have not provided extensive public details on the structure of the deals, but the reported total places the assignments among the more significant recent wins in the retirement asset outsourcing market.