Private Markets Push: Can Goldman Profit From T. Rowe Price Tie-Up?

Goldman Sachs GS has partnered with T. Rowe Price TROW to offer a diversified suite of public and private market solutions tailored for retirement and wealth investors. As part of the collaboration, Goldman will invest roughly $1 billion in T. Rowe Price, acquiring a stake of about 3.5%.

The alliance will focus on expanding private market access for individuals, advisors and plan sponsors, offering Target-Date Strategies (mid-2026), model portfolios, multi-asset offerings, personalized advice and advisor-managed accounts. It will also give Goldman Sachs access to T. Rowe Price’s retirement-focused clients, combining stable income with growth potential.

David Solomon, chairman and CEO of Goldman, stated, “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.”

This partnership between GS and TROW follows an executive order signed last month, aimed at expanding access to alternative assets for 401(k) participants, paving the way for broader participation in private market investments and enhanced retirement diversification.
 
This allows GS and TROW to leverage their expertise in private markets, grow assets under management, strengthen their position in the growing retirement solutions market and generate higher fee income through an expanded client base.

Private Market Ventures by Other Major Finance Firms

Other major financial firms such as BlackRock Inc. BLK and JPMorgan JPM have been enhancing their private markets capabilities to capitalize on rising demand and attract new clients.
  
Over the past year, BlackRock has invested more than $28 billion to strengthen its position in the high-growth private markets space. Further, BlackRock is targeting $400 billion in private markets fundraising by 2030, with an aim to double its operating income and market capitalization by 2030.
 
Likewise, in February 2025, JPMorgan announced an additional $50 billion allocation toward direct lending, solidifying its presence in the lucrative private credit market. Since 2021, JPMorgan has deployed more than $10 billion across 100+ private credit transactions, leveraging its extensive client base and vast origination platform.

Goldman’s Price Performance, Valuation & Estimates

Shares of GS have gained 30.8% year to date compared with the industry’s growth of 23.6%. 

From a valuation standpoint, Goldman trades at a forward price-to-earnings (P/E) ratio of 14.91X, above the industry’s average of 14.65X.  

The Zacks Consensus Estimate for Goldman’s 2025 and 2026 earnings implies year-over-year growth of 12.6% and 14.9%, respectively. The estimates for both years have remained unchanged over the past 30 days.   

Goldman currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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