Goldman Sachs Asset Management plans to expand its mutual fund business by acquiring small fund families from banks looking to quit the proprietary fund business.

The New York financial services company last year announced the purchase of one bank-owned fund family and a definitive agreement for another. James McNamara, a managing director and the head of third-party distribution at Goldman Sachs, said the firm is looking to buy "sub-scale" fund families, those with less than $5 billion of assets under management.

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