GOLDMAN SACHS AND T. ROWE PRICE ANNOUNCE STRATEGIC COLLABORATION TO DELIVER INNOVATIVE PUBLIC-PRIVATE INVESTMENT SOLUTIONS
Rhea-AI Summary
T. Rowe Price (NASDAQ:TROW) and Goldman Sachs have announced a major strategic collaboration to develop innovative public-private investment solutions, particularly focused on retirement and wealth management. As part of the deal, Goldman Sachs plans to invest up to $1 billion in T. Rowe Price stock, targeting a 3.5% ownership stake.
The partnership will launch several key initiatives: co-branded target-date strategies incorporating private market investments (launching mid-2026), model portfolios for mass-affluent and high-net-worth clients, multi-asset offerings including private equity and infrastructure investments, and personalized advice solutions for retirement accounts. The collaboration leverages Goldman's private markets expertise with T. Rowe Price's retirement and active investing capabilities.
Positive
- None.
Negative
- Potential execution risks in integrating different investment strategies
- Complex regulatory requirements for offering private market investments to retail investors
News Market Reaction – TROW
In the Sep 4 session, TROW gained 5.84%, reflecting a notable positive market reaction. Argus tracked a peak move of +7.3% during that session. Our momentum scanner triggered 22 alerts that day, indicating elevated trading interest and price volatility.
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Firms will broaden access to diversified public and private market portfolios with a focus on retirement and wealth channels
This collaboration will leverage the strengths of both firms, including respective investment expertise, solutions orientations, and a deep understanding of the needs of intermediaries and their clients. A central focus is on providing a range of wealth and retirement offerings that incorporate access to private markets for individuals, financial advisors, plan sponsors, and plan participants.
The firms are pleased to announce that Goldman Sachs intends to invest, through a series of open-market purchases, up to
"This investment and collaboration represent our conviction in a shared legacy of success delivering results for investors," said David Solomon, Chairman and Chief Executive Officer 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."
Rob Sharps, Chair, Chief Executive Officer and President of T. Rowe Price, said, "As a leader in retirement, we have a proven track record of using our expertise to drive solutions that help our clients confidently prepare for, save for, and live in retirement. We are excited to collaborate with Goldman Sachs—building on our broad capabilities across public and private markets to offer clients the ability to unlock the potential of private capital as part of their retirement and wealth management strategies."
"This strategic collaboration greatly enhances T. Rowe Price's and OHA's ability to deliver a wider range of investment strategies, focusing on accelerating innovation and creating new products to serve client needs. We welcome T. Rowe Price's and Goldman Sachs' commitment to deepen private market alternatives access to wealth and retirement clients. We view this collaboration as an important milestone in OHA's growth with T. Rowe Price," said Glenn August, Founder and Chief Executive Officer of OHA.
Key Highlights
- Target-Date Strategies: The firms will offer new, co-branded target-date strategies that leverage T. Rowe Price's expertise in the retirement blend series while broadening plan participants' access to private markets by incorporating investment capabilities from Goldman Sachs, T. Rowe Price and OHA. Goldman Sachs will serve as third-party provider of private market strategies for the target-date series. The firms intend to launch the solutions in mid-2026.
- Model Portfolios: The firms will introduce a series of jointly created, co-branded model portfolios leveraging the strengths of both organizations, incorporating SMAs, direct indexing, ETFs, mutual funds and private market vehicles tailored to the needs of advisors serving mass-affluent and high-net-worth (HNW) clients.
- Multi-Asset Offerings: T. Rowe Price and Goldman Sachs will also collaborate on multi-asset offerings. The firms are currently considering two strategies—one that will provide access to asset classes such as private equity, private credit and private infrastructure in a diversified portfolio delivered through one vehicle, and another that integrates US public and private equity investing into a single offering.
- Personalized Advice Solutions and Advisor Managed Accounts: The firms are collaborating to deliver an innovative, scalable advisory platform for advisors and other RIAs to offer managed retirement accounts at scale in-plan and out-of-plan. This includes integrating retirement planning and advice from the firms into the T. Rowe Price recordkeeping and Individual Investor platforms.
ABOUT GOLDMAN SACHS
Goldman Sachs is a leading global financial institution that delivers a broad range of financial services to a large and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in
ABOUT GOLDMAN SACHS ASSET MANAGEMENT
Goldman Sachs Asset Management is the primary investing area within Goldman Sachs, delivering investment and advisory services across public and private markets for the world's leading institutions, financial advisors, and individuals. The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets. Goldman Sachs Asset Management is a leading investor across fixed income, liquidity, equity, alternatives, and multi-asset solutions. Goldman Sachs oversees approximately
ABOUT GOLDMAN SACHS ALTERNATIVES
Goldman Sachs Alternatives is one of the leading investors globally, with over
ABOUT T. ROWE PRICE
T. Rowe Price (NASDAQ-GS: TROW) is a leading global asset management firm, entrusted with managing US
Visit troweprice.com/newsroom for news and public policy commentary.
ABOUT OHA
OHA is a leading global credit-focused alternative asset manager with over 30 years of investment experience. OHA works with institutions and individuals and seeks to deliver a consistent track record of attractive risk-adjusted returns. The firm has approximately
¹Amount includes approximately
This press release is not an offer to purchase or a solicitation of an offer to sell shares of T. Rowe Price common stock.
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SOURCE T. Rowe Price Group