Goldman Sachs has disclosed plans to acquire a stake of up to 3.5% in T. Rowe Price, through open-market purchases of common stock worth up to $1bn.  

The move is part of an alliance between the two entities, aimed at providing a suite of investment solutions for the retirement and wealth sectors. 

The alliance is set to utilise the combined capabilities of both firms, including their investment acumen.  

Jointly developed target-date strategies are on the horizon, combining T. Rowe Price’s retirement series knowledge with Goldman Sachs’ private market strategies, where the latter will function as a third-party provider. 

The launch of these solutions is targeted for mid-2026. 

The partnership will also bring to market co-branded model portfolios, incorporating a variety of investment vehicles to support the advisory needs of diverse wealth segments.  

These portfolios will be specifically designed to cater to the requirements of financial advisors serving mass-affluent and high-net-worth individuals. 

In terms of multi-asset offerings, the firms are contemplating two strategies. One will provide access to a range of private asset classes through a single investment vehicle, and another will combine US public and private equity investments. 

The collaboration aims to deliver a “scalable” advisory platform, enabling advisors and RIAs to offer managed retirement accounts both in-plan and out-of-plan. 

The initiative will integrate retirement planning and advice into T. Rowe Price’s existing platforms. 

Goldman Sachs CEO and chairman David Solomon said: “This investment and collaboration represent our conviction in a shared legacy of success delivering results for investors. 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.” 

T. Rowe Price chair, CEO and president Rob Sharps stated: “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.” 

Last month, Goldman Sachs made headlines for reportedly seeking to expand its private wealth management team in Australia.  

The expansion is targeted at self-made multimillionaires and families looking to diversify their investments globally, according to Bloomberg.