12:10 PM EDT, 09/04/2025 (MT Newswires) -- Goldman Sachs ( GS ) plans to buy up to $1 billion worth of common shares in T. Rowe Price ( TROW ) , as the two companies joined forces to offer retirement and wealth management products.

Goldman aims to own up to 3.5% of the asset management firm via a series of open-market stock purchases, they said Thursday in a joint statement.

Shares of T. Rowe were 6.3% higher intraday, while Goldmans' rose 1.5%.

"With Goldman Sachs' ( GS ) decades of leadership innovating across public and private markets and T. Rowe Price's ( TROW ) expertise in active investing, clients can invest confidently in the new opportunities for retirement savings and wealth creation," Goldman Chief Executive David Solomon said.

The partnership will offer co-branded target-date strategies in mid-2026 and model portfolios, according to the statement.

Target date funds start with riskier investments for growth potential and gradually shift to more conservative options.

The companies are looking to offer investment opportunities in a diversified private portfolio across equity, credit and infrastructure, and one that combines US public and private equity.

"This strategic collaboration greatly enhances T. Rowe Price's ( TROW ) and OHA's ability to deliver a wider range of investment strategies," said Glenn August, CEO of OHA, the private markets platform of T. Rowe.

Price: 739.77, Change: +9.21, Percent Change: +1.26