Goldman Sachs wins $70 billion retirement mandate from Verizon and Lockheed Martin

Goldman Sachs confirmed on July 9 that it has secured mandates to manage a combined $70 billion in retirement assets for Verizon Communications and Lockheed Martin. The transaction represents one of the largest corporate investment outsourcing wins in recent history, highlighting a broader structural shift where large corporations are transferring retirement fund management to Wall Street firms. The agreement comprises approximately $30 billion in pension assets for both companies and roughly $40 billion in Verizon’s defined-contribution 401(k) plans.

This deal underscores the increasing complexity of managing institutional portfolios, particularly as alternative assets such as private equity, private credit, and infrastructure have grown from approximately 5% to between 30% and 50% of institutional portfolios, according to the April 2026 Praxis Rock report. Corporate benefits teams, often staffed by lean internal teams, face significant challenges in sourcing deal flow, tracking capital calls, and conducting due diligence across numerous alternative managers simultaneously.

Goldman Sachs’ outsourced chief investment officer (OCIO) business currently manages approximately $480 billion in assets as of March 31, 2026. The firm’s Asset and Wealth Management division generated $16.68 billion in full-year 2025 net revenues, including a record $11.54 billion in management and other fees. In the first quarter of 2026, the division reported $4.08 billion in net revenues, a 10% increase year-on-year, with management and other fees reaching $3.08 billion.

The move by Verizon and Lockheed Martin follows a multi-year strategy to reduce internal retirement management burdens. Verizon executed a $5.9 billion pension risk transfer in 2024 to RGA Reinsurance and Prudential, while Lockheed Martin has previously transferred $800 million in 2018, $4.9 billion in 2021, and $4.3 billion in 2022 to insurance providers including Athene. Marc Nachmann, Goldman’s global head of asset and wealth management, stated that large plan sponsors are consolidating responsibilities with a single partner possessing the investment expertise to manage bespoke needs.

Goldman Sachs reported $62 billion in long-term fee-based net inflows in the first quarter of 2026, marking its 33rd consecutive quarter of positive long-term inflows. The attraction of OCIO mandates lies in the generation of steady, recurring fee income that provides a structural buffer against the volatility inherent in trading and investment banking revenues. This trend reflects employee demand for sophisticated retirement options, including personalized managed accounts and lifetime income solutions, which traditional consulting models may struggle to deliver with sufficient speed.