By Emma-Victoria Farr

LONDON (Reuters) – Goldman Sachs has acquired Netherlands-based asset manager NN Investment Partners for 1.7 billion euros ($1.9 billion) to expand its asset management footprint in Europe and increase its sustainable investment capabilities.

NN Investment Partners, formerly part of NN Group, will be integrated into Goldman Sachs Asset Management (GSAM). The acquisition of the firm, which has more than 900 employees, brings Goldman’s assets under supervision to approximately 2.8 trillion dollars.

Buying NN Investment Partners, based in The Hague, is part of Goldman Sachs’ plan to scale up its European operations. The business will push growth in products such as European equity and investment-grade credit, sustainable investments and “green” bonds.

It will also help GSAM deepen its integration of environmental, social and governance (ESG) values into its operations.

“This acquisition advances our commitment to put sustainability at the heart of our investment platform. It adds scale to our European client franchise and extends our leadership in insurance asset management,” David Solomon, chairman and chief executive of Goldman Sachs, said on Monday.

Solomon is looking to diversify the bank’s revenue to focus on more predictable business such as consumer banking, wealth and asset management.

As part of the transaction, GSAM has entered into a long-term strategic partnership with NN Group to manage an approximately 180 billion dollar asset portfolio.

($1 = 0.9185 euros)

(Reporting by Emma-Victoria Farr; Editing by Andres Gonzalez and David Holmes)