Goldman Sachs and T. Rowe Price Partner to Enhance Retirement Investment Solutions

Goldman Sachs and T. Rowe Price have announced a strategic collaboration aimed at delivering diversified public and private market investment solutions tailored for retirement and wealth management clients. As part of this partnership, Goldman Sachs plans to invest up to $1 billion in T. Rowe Price common stock through open-market purchases, aiming to acquire up to a 3.5% ownership stake.

This collaboration focuses on several key initiatives:

• Co-Branded Target-Date Strategies: Launching in mid-2026, these strategies will integrate private market investments from both firms, providing retirement plan participants with diversified portfolios.

• Model Portfolios: Designed for mass-affluent and high-net-worth clients, these portfolios will combine separately managed accounts, direct indexing, ETFs, mutual funds, and private market vehicles.

• Multi-Asset Offerings: The firms plan to introduce strategies that provide access to asset classes such as private equity, private credit, and private infrastructure within a single diversified portfolio.

This partnership reflects a broader industry trend of expanding access to private market investments for individual investors, particularly within retirement planning. The collaboration leverages Goldman Sachs' expertise in private markets and T. Rowe Price's established presence in retirement investing to offer innovative solutions to clients.

Following the announcement, T. Rowe Price's shares rose approximately 6% in pre-market trading, offsetting some of its nearly 7% year-to-date losses.

Other major asset firms have pursued similar strategies, including partnerships between Vanguard and Blackstone, and Capital Group with KKR.

This collaboration between Goldman Sachs and T. Rowe Price signifies a significant shift in the asset management industry, aiming to provide individual investors with access to investment opportunities traditionally reserved for institutional clients.