Goldman Sachs Investing $1 Billion in T. Rowe Price, Eyes 3.5% Ownership

Goldman Sachs (GS) announced on Thursday that it plans to invest as much as $1 billion in the T. Rowe Price Group (TROW), with the intention to build a stake of 3.5%, as part of a new strategic collaboration. The company said that it will do so “through a series of open-market purchases.”

The two firms said they will partner to design and distribute public- and private-market investment products tailored to wealth managers, retirement plans, and individual investors. It is Goldman’s only investment in an outside asset management firm. David Solomon, Chairman and CEO of Goldman, noted that the “shared legacy of success” of T. Rowe and Goldman would drive the product.

Goldman Sachs’ stock edged 0.3% higher in morning trade. On Stocktwits, retail sentiment around the U.S. bank trended lower within ‘bearish’ territory over the past day. Meanwhile, T. Rowe’s stock jumped as much as 7.5%, with retail sentiment surging to ‘bullish’ from ‘neutral’ over the last 24 hours. If the pre-market gains hold, it would nearly erase the stock’s 2025 losses, with the shares down nearly 7.5% year to date.

For T. Rowe Price, the collaboration offers new growth avenues as traditional mutual funds face mounting fee pressure and investor migration to exchange traded funds (ETFs). Last month, it was reported that the company was implementing job cuts to reduce costs after several years of continuous fund outflows. Goldman, meanwhile, has been expanding its asset and wealth management arm to balance its investment banking and trading operations.

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