rewrite this title T. Rowe Price shares jump after deal where Goldman will invest $1 billion in asset manager

T. Rowe Price shares rallied Thursday after the asset manager struck a $1 billion deal with Goldman Sachs to sell private market products to retail investors.

Goldman will buy up to $1 billion in T. Rowe Price common stock through open market purchases with the intention to own up to 3.5%, according to the announcement. The two financial firms will team up to offer wealth and retirement funds that give access to private markets for individuals, financial advisors, plan sponsors and plan participants.

T. Rowe Price shares surged more than 5% Thursday.

“This investment and collaboration represent our conviction in a shared legacy of success delivering results for investors,” David Solomon, CEO of Goldman, said in a statement. “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.”

T. Rowe Price’s shares have struggled over the years with the Baltimore-based firm slow to embrace the exchange-traded fund boom with its bread and butter being active management, resulting in massive withdrawals and disappointing returns. T. Rowe shares have provided a negative return over the last five years for investors.

The new deal came on the heels of President Donald Trump’s newly signed executive order that aimed at allowing investors greater access to alternative assets for 401(k) plans, including cryptocurrencies and private market assets.