T. Rowe Price Soars on $1B Goldman Sachs Investment, Partnership
Asset management giants to co-develop private market investment solutions for the retirement and wealth sectors, boosting TROW shares over 8%.
Shares of T. Rowe Price (TROW) surged more than 8% after the asset manager announced a significant strategic collaboration with Goldman Sachs aimed at creating new investment products for retirement and wealth clients. The deal was underscored by Goldman's plan to purchase up to $1 billion in T. Rowe Price common stock, signaling a major vote of confidence.
The partnership intends to leverage the unique strengths of both firms: T. Rowe Price's deep expertise in retirement investing and Goldman Sachs's leadership in private markets. According to the , the collaboration will broaden access to diversified portfolios that blend public and private assets, a growing demand among investors.
"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. Rob Sharps, CEO of T. Rowe Price, added that the firms are building on their capabilities "to offer clients the ability to unlock the potential of private capital."
Key initiatives include the development of new co-branded target-date strategies, jointly created model portfolios, and multi-asset offerings that provide access to private equity, credit, and infrastructure. These new solutions are expected to begin launching in mid-2026.
The move is seen as a strategic win for both companies. For Goldman Sachs, it provides a direct path into T. Rowe Price's extensive retirement account distribution network, which constitutes about two-thirds of its assets. For T. Rowe Price, the partnership and capital injection come after a challenging period of asset outflows, with the poised to make it the firm's fifth-largest shareholder. The market's reaction was immediate and positive, with trading volume for TROW stock hitting 4.5 times its daily average, reflecting strong investor enthusiasm for the synergistic potential of the collaboration.