Goldman Sachs and T. Rowe Price announce private-funds strategic partnership
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The news: Wall Street bank Goldman Sachs will partner with leading asset manager T. Rowe Price Group, to develop and distribute private market products to retail investors.
The numbers: The companies announced that, as part of the agreement, Goldman Sachs intends to invest “through a series of open market purchases,” up to USD1 billion ($1.53 billion) in T. Rowe Price common stock with the intention to own a stake of up to 3.5%.
The context: The arrangement means Goldman Sachs will use its balance sheet to hold equity in T. Rowe Price, and the firms will collaborate on range of investments for retirement savers and wealthy investors, the firms told Bloomberg in an emailed statement.
The firms said they intend to launch the solutions in mid-2026, offering a series of jointly created, co-branded model portfolios leveraging the strengths of both organisations, incorporating SMAs, direct indexing, ETFs, mutual funds and private market vehicles tailored to the needs of advisors serving mass-affluent and high-net-worth clients. The firms will use offerings from Oak Hill Advisors, the USD98 billion private credit money manager bought by T. Rowe Price four years ago.
The firms will also offer retirement and wealth-management investors privately-held products.
T. Rowe Price manages USD1.7 trillion in client assets as at 31 July 2025, around two-thirds of which are retirement-related. Shares in the asset manager have tumbled more than 50% from a 2021 peak.
What they said: “This investment and collaboration represent our conviction in a shared legacy of success delivering results for investors,” said David Solomon, chairman and CEO of Goldman Sachs. “With Goldman Sachs' decades of leadership innovating across public and private markets and T. Rowe Price’s expertise in active investing, clients can invest confidently in the new opportunities for retirement savings and wealth creation.”
The sources: T. Rowe Price press release, Bloomberg, Barron's
