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Key Takeaways
- T. Rowe Price and Goldman Sachs will collaborate on offering public-private investment solutions for clients.
- Goldman Sachs will purchase up to $1 billion in T. Rowe Price stock as part of the deal.
- The firms plan to launch their products in mid-2026.
T. Rowe Price (TROW) shares surged nearly 6% Thursday as the investment manager teamed up with financial giant Goldman Sachs (GS) to offer clients public-private investment solutions.
The firms said the collaboration would focus on “providing a range of wealth and retirement offerings that incorporate access to private markets for individuals, financial advisors, plan sponsors, and plan participants.”
As part of the arrangement, Goldman Sachs plans to buy as much as $1 billion worth of T. Rowe Price stock, with the intention of holding up to a 3.5% stake.
“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,” Goldman CEO David Solomon said.
The companies expect to launch the offerings in the middle of next year.
Even with today’s advance, shares of T. Rowe Price remain slightly negative for the year. Goldman Sachs shares, which were up about 1% in recent trading, are nearly 30% higher year-to-date.
