Goldman Sachs, T. Rowe Price to Collaborate, Bring New Investments to Market

Goldman Sachs Group Inc. will invest up to $1 billion in T. Rowe Price Group Inc. common stock as part of a collaboration between the two companies to bring more public and private market products to retirement and wealth investors.

According to the companies, this will provide a range of wealth and retirement offerings that incorporate access to private markets for individuals, financial advisers, plan sponsors and plan participants. In a press release, the companies announced the partnership will bring to market:

• New, co-branded target-date strategies, intended to be launched in mid-2026, that leverage T. Rowe Price’s expertise in the retirement blend series while incorporating investment capabilities from Goldman Sachs, T. Rowe Price and global credit-focused alternative asset manager Oak Hill Advisors L.P. Goldman Sachs will serve as third-party provider of private market strategies for the target-date series;
• A series of jointly created, co-branded model portfolios for advisers serving mass-affluent and high-net-worth clients, leveraging the strengths of both organizations, incorporating separately managed accounts, direct indexing, exchange-traded funds, mutual funds and private market vehicles;
• A platform for advisers and other registered investment advisers to offer managed retirement accounts at scale, both in-plan and out-of-plan, integrating retirement planning and advice from the firms into the T. Rowe Price recordkeeping and individual investor platforms; and
• New multi-asset offerings to be determined. According to the firms, two strategies are under consideration—one that would 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 would integrate U.S. public and private equity investing into a single offering.

Through its purchase of stock, Goldman intends to own up to 3.5% of T. Rowe Price.

“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, in the statement. “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, CEO 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.”

Glenn August, founder and CEO of OHA, said in a statement, “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.”