T. Rowe Price Group Inc. Shares Gain as Goldman Sachs $1B Investment Announced

T. Rowe Price Group Inc. (NASDAQ: TROW) shares surged over 5% in early trading on Thursday, September 4, 2025, following the announcement of a strategic partnership with Goldman Sachs Group Inc. (NYSE: GS). The collaboration involves Goldman’s commitment to invest up to $1 billion in T. Rowe Price stock through open-market purchases, potentially making the Wall Street giant one of T. Rowe’s five largest shareholders with up to a 3.5% stake.

This partnership represents a significant development for both firms as they seek to capitalize on the growing demand for alternative investment products among retail and retirement investors.

Goldman Sachs Will Acquire T. Rowe Price Through Open-Market Purchases: Report

Goldman Sachs will acquire its T. Rowe Price stake through a series of open-market purchases, marking the investment bank’s only equity investment in an outside asset management firm. The partnership focuses on delivering innovative public-private investment solutions, particularly targeting retirement savers and wealthy investors through co-branded target-date strategies and jointly created model portfolios.

Goldman Chairman and CEO David Solomon emphasized that the collaboration leverages Goldman’s decades of leadership in public and private markets combined with T. Rowe’s expertise in active investing.

The strategic alliance comes at a critical time for the asset management industry, as traditional players like T. Rowe Price push into alternative assets previously dominated by private equity firms. Both companies are seeking new revenue sources while private-markets leaders want to leverage the sales teams and relationships of traditional firms to attract retail investors amid slowing institutional fundraising.

Marc Nachmann, Goldman’s head of asset and wealth management, expressed confidence in the partnership despite T. Rowe’s significant outflows of over $200 billion from its funds over the past five years.

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T. Rowe Price Stock Performance and Market Position

As of 10:37 AM EDT on September 4, 2025, T. Rowe Price shares traded at $110.89, up $5.52 or 5.24% from the previous close of $105.37. The stock has struggled significantly since 2021, losing over 50% of its value from its peak and underperforming major competitors including BlackRock, State Street, and Goldman Sachs itself. With a market capitalization of $24.35 billion and managing approximately $1.70 trillion in client assets (two-thirds retirement-related), T. Rowe Price has faced challenges from the shift toward low-cost index funds and ETFs.

The company’s financial metrics reflect both its challenges and potential value proposition, with a trailing P/E ratio of 12.43, forward P/E of 10.98, and a dividend yield of 4.82%. T. Rowe Price has been particularly vulnerable due to its primary focus on actively managed public investments, experiencing asset outflows amid the 2022 market plunge that slammed performance and prompted client withdrawals.

T. Rowe CEO Rob Sharps noted that Goldman’s equity investment signals a long-term commitment and creates alignment between the firms, potentially providing the boost needed for the asset manager’s recovery efforts.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.