On Monday, May 1, 2023, T. Rowe Price Technology Development Center in New York, USA.
Bing Guan | Bloomberg | Getty Images
T. Rowe Price shares gathered Thursday after an asset manager signed a $1 billion deal with Goldman Sachs and sold private market products to retail investors.
Goldman will purchase up to $1 billion in T. Rowe priced common stock through open market purchases, with the intention of owning up to 3.5%, according to the announcement. The two financial companies will work together to provide wealth and retirement funds that provide access to the private market for individuals, financial advisors, planning sponsors and plan participants.
T. Rowe’s priced stocks rose 8% in pre-market trading.
“This investment and collaboration represents our belief in the shared legacy of success that provides results to investors,” Goldman CEO David Solomon said in a statement. “Goldman Sachs’ decades of leadership innovates the public and private markets, and T. Low Price’s aggressive investment expertise allows clients to confidently invest in new opportunities for retirement savings and wealth creation.”
T. Rowe Price’s shares have been struggling for many years, and the Baltimore-based company was able to embrace the exchange fund boom, with bread and butter being aggressively managed, bringing massive withdrawals and disappointing returns. T. Rowe’s stock has brought negative returns to investors over the past five years.
The new contract came shortly after President Donald Trump’s newly signed executive order. It aims to grant investors in the 401(k) plan, including cryptocurrency and private market assets, access to more alternative assets.
