Goldman Sachs to acquire $1B stake in T. Rowe Price, plots joint private-market offerings for retirement clients

Goldman Sachs is set to acquire up to a 3.5% stake in T. Rowe Price Group through a $1 billion investment, marking a strategic collaboration between two of the largest names in asset management.

The partnership, announced Thursday, will see both firms develop a suite of public and private market investment solutions tailored for retirement and wealth management channels.

The collaboration aims to broaden access to diversified portfolios, with a particular focus on retirement investors, financial advisors, plan sponsors, and plan participants. According to the companies, the initiative will leverage Goldman’s experience in private markets and T. Rowe Price’s established presence in retirement investing.

“This investment and collaboration represent our conviction in a shared legacy of success delivering results for investors,” David Solomon, chief executive officer of Goldman Sachs, in a statement announcing the news. He added that the partnership will allow clients to “invest confidently in the new opportunities for retirement savings and wealth creation.”

The deal comes as major Wall Street firms, including Goldman Sachs, BlackRock, and Morgan Stanley, are increasingly seeking to expand their footprint in alternative assets – an area traditionally dominated by private equity firms. The move is seen as a way to tap into the growth potential of alternatives and attract new clients, particularly as the asset management industry faces shifting competitive dynamics.

Goldman’s investment will be made through a series of open-market purchases with the intention of becoming T. Rowe Price’s fifth-largest shareholder. The partnership will also give Goldman access to T. Rowe Price’s substantial retirement-focused client base, which accounts for roughly two-thirds of the firm’s assets.

“Goldman did not buy a friend, it bought a fast lane into 401(k) distribution since two-thirds of T. Rowe's assets come from retirement accounts,” Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors, said in a Reuters report covering the news.

Among the planned offerings are co-branded target-date strategies that blend T. Rowe Price’s retirement expertise with Goldman’s private market capabilities. The firms intend to launch these solutions in mid-2026.

Additional initiatives include jointly developed model portfolios for mass-affluent and high-net-worth clients, presumably building upon Goldman's partnership with GeoWealth and iCapital, as well as multi-asset products that combine public and private equity, private credit, and infrastructure investments.

The partnership also extends to personalized advice solutions and advisor-managed accounts, with the goal of delivering scalable advisory platforms for RIAs – a market that Goldman has been aggressively trying to break into through its custodial arm – and other financial professionals. These platforms will integrate retirement planning and advice into T. Rowe Price’s recordkeeping and individual investor services.

The announcement follows a period of challenge for T. Rowe Price, which has experienced asset outflows and underperformance amid industry changes. News of the Goldman partnership drove its stock, which has lost half its value since 2021, to surge by as much as 10% Thursday morning before settling to 6% in the afternoon, according to CNBC.

Evercore ISI analysts noted that Goldman brings a “broad range of private markets and wealth management capabilities” to the relationship, positioning both firms to address evolving client needs.