Goldman Sachs and T. Rowe Price announce $1bn private markets partnership
Goldman Sachs and T. Rowe Price have announced a ‘strategic collaboration’ aimed at delivering a range of diversified private market solutions for retirement and wealth investors.
The partnership will leverage the strengths of both firms and will aim to provide a range of wealth and retirement offerings that incorporate access to private markets for individuals, financial advisers, plan sponsors and plan participants.
Goldman Sachs intends to invest up to $1bn (£740m) in T. Rowe Price common stock through a series of open-market purchases, with the intention to own up to 3.5 percent.
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Through the partnership, the firms will also offer new co-branded target-date strategies that include access to private markets, and introduce a series of jointly created, co-branded model portfolios. They will also collaborate on multi-asset offerings.
The firms are currently considering two strategies: one that will provide access to asset classes such as private equity, private credit and private infrastructure in a diversified portfolio delivered through one vehicle, and another that integrates US public and private equity investing into a single offering.
“This investment and collaboration represent our conviction in a shared legacy of success delivering results for investors,”said David Solomon, chairman and chief executive of Goldman Sachs.
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“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.”
“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,” added Rob Sharps, chair, chief executive and president of T. Rowe Price.
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