Goldman Sachs intends to spend up to $1 billion to purchase shares of Baltimore-based T. Rowe Price, with the intent to own 3.5%, the companies announced Thursday.

The news follows what T. Rowe Price officials told shareholders was a “challenging quarter,” including layoffs.

The investment firms aim to expand their offerings of public and private market portfolios, with a focus on retirement and wealth investors.

They will offer co-branded target-date strategies, taking advantage of T. Rowe’s retirement expertise and broadening access to markets and investment capabilities from Goldman, the companies said. Those financial products are expected to launch in mid-2026.

In a statement, Rob Sharps, the chair, CEO and president of T. Rowe Price, said the firm has a proven record of helping clients prepare and save for retirement.

“We are excited to collaborate with Goldman Sachs — building on our broad capabilities across public and private markets to offer clients the ability to unlock the potential of private capital as part of their retirement and wealth management strategies,” Sharps said.

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

The firms also intend to introduce co-branded model portfolios and other multi-asset offerings.

T. Rowe Price moved its headquarters from a longtime location downtown to a lavish building in Harbor Point in March.

Share prices for T. Rowe Price stock and Goldman Sachs stock jumped after the joint announcement. The price of T. Rowe stock ended at about $111 Thursday, up from about $105 Wednesday.

Goldman shares closed Wednesday at about $730 and hit about $748 Thursday.