Goldman Sachs has agreed to invest up to $1bn in T Rowe Price, acquiring as much as 3.5% of the US asset manager’s stock, the Financial Times reports.

The deal will make Goldman one of T Rowe’s largest shareholders and anchor a partnership to expand private market access for retail and wealth clients.

The collaboration will focus on target date funds and model portfolios combining public and private assets, including leveraged buyout and private credit vehicles. The strategy reflects a growing industry shift to offer private markets exposure to individual investors, following a recent executive order by US President Donald Trump paving the way for private equity and credit in 401k retirement plans.

“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,” said David Solomon, Chief Executive of Goldman Sachs.

T Rowe CEO Rob Sharps said the partnership builds on the firm’s “broad capabilities across public and private markets to offer clients the ability to unlock the potential of private capital.”

The move comes as traditional asset managers compete to establish private markets strategies. Vanguard has allied with Wellington and Blackstone, Capital Group has partnered with KKR, and BlackRock has acquired Global Infrastructure Partners and HPS Investment Partners.

T Rowe Price, which has struggled in recent years with outflows from actively managed funds amid the rise of ETFs, saw its shares climb 8% in pre-market trading to $114.07 on news of Goldman’s investment.

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