Private Markets Sector
Goldman Sachs expanded into options-based funds by agreeing to buy Neos Investments for up to $2.25 billion, while Bank of America agreed to pay $1.9 billion for a stake in India's Jio Credit. Meanwhile, Swissquote lowered its 2026 revenue target due to a steep fall in crypto income, and PayPal entered sale talks following an rejected $53 billion offer. In regulatory news, World Liberty Financial won conditional OCC trust approval, and the CFTC allowed Kalshi to continue operating in New York despite state litigation.
Swissquote lowered its full-year 2026 revenue and profit targets after a 66.2% plunge in crypto trading net income dragged down its first-half performance, sending its shares tumbling 14%. The Swiss online banking group now expects full-year net revenue of approximately CHF 730 million and pre-tax profit of about CHF 365 million, down from prior forecasts of CHF 760 million and CHF 385 million respectively. Net crypto asset income fell to CHF 14.6 million during the first half as trading volumes contracted 63.5% to CHF 2.58 billion. The unit's results also absorbed a CHF 5.3 million negative mark-to-market adjustment on inventory held to support liquidity on the firm's proprietary SQX exchange. Gains elsewhere cushioned the blow, with net fee and commission income excluding crypto rising 13% to CHF 123.7 million and net interest income increasing 7.2% to CHF 115.9 million. Total client assets reached a record CHF 96.3 billion following CHF 5.1 billion in net new money, while total accounts rose to 1,220,818. Despite the reduced outlook, management left its longer-term 2028 pre-tax profit target of CHF 500 million unchanged.
The Office of the Comptroller of the Currency granted conditional preliminary approval for a national trust bank charter to World Liberty Trust Company, a subsidiary of the Trump-backed crypto venture World Liberty Financial. The designation allows the newly formed entity to bring issuance, custody, and reserve management of its USD1 stablecoin in-house rather than relying on BitGo Bank and Trust. The charter carries strict conditions, including maintaining at least $20 million in capital and appointing an internal audit manager. While the trust bank lacks depository and lending powers, it permits nationwide digital asset custody for institutional clients under federal oversight. Democratic lawmakers and consumer groups sharply criticized the decision as an ethical conflict involving President Donald Trump and his family's financial interests, though agency officials maintained the application underwent standard review by career staff.
Goldman Sachs agreed to acquire ETF provider Neos Investments in a cash-and-equity transaction valued at up to $2.25 billion. The deal is slated to close in the first quarter of 2027 pending regulatory approval, bringing 19 options-based income funds under Goldman Sachs Asset Management. Neos manages approximately $30 billion in assets, anchored by funds like the $1.1 billion Neos Bitcoin High Income ETF (BTCI) which employs covered-call strategies on spot crypto ETPs to generate monthly distributions. The acquisition follows Goldman's purchase of Innovator Capital Management, combining to push the firm's global ETF platform to roughly $130 billion and positioning it among the top eight active ETF managers. Neos co-founders Troy Cates and Garrett Paolella will join Goldman Sachs as partners as the firm accelerates its push into derivative-based income strategies.