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Goldman, T. Rowe Team Up on Alternatives for Wealthy, Retirement Savers
ZACKS·2025-09-17 18:26

Core Insights - The partnership between Goldman Sachs and T. Rowe Price aims to enhance individual investors' access to private markets through alternative investment products by late 2025, with retirement account solutions to follow in 2026 [1][9] - This initiative is a response to an executive order that expanded 401(k) plans to include private credit and private equity, potentially unlocking access to approximately $9 trillion in U.S. retirement savings [2] - Goldman Sachs will invest up to $1 billion in T. Rowe Price to strengthen their collaboration and co-develop new offerings [3][9] Product Development and Rollout - The rollout of alternative investment products will occur in stages, starting with affluent clients and later expanding to retirement savers [7] - Retirement products will initially feature small allocations to alternatives, decreasing as investors approach retirement, while specialized portfolios will combine private credit, private equity, and traditional public investments for affluent clients [4] Liquidity and Transparency Measures - To address liquidity and transparency concerns, retirement products will include daily pricing and limited liquidity options, with alternative investments potentially representing 10%–20% of retirement portfolios in the long term [5] Management Perspectives - Goldman Sachs' head of Wealth and Asset Management highlighted the goal of making these products accessible to a broader audience beyond large institutions and high-net-worth individuals [6] - T. Rowe Price's CEO expressed confidence in having various products available by mid-2026, emphasizing the importance of liquidity and daily pricing for individual investors [6] Market Context - The initiative represents a significant step in integrating alternative investments into mainstream retirement and wealth planning, combining Goldman's expertise in private markets with T. Rowe's retirement planning experience [7] - Over the past year, Goldman Sachs shares have increased by 61.8%, outperforming the industry growth of 49.3% [8]