Goldman Sachs is set to become one of the largest shareholders in the challenged asset management firm T. Rowe Price, and the two companies will work together to create new products invested in public and privately held assets.

The bank plans to buy up to $1bn of shares in Baltimore-based T. Rowe over time through a series of purchases in the open market, up to 3.5% of T. Rowe’s outstanding stock. Goldman is using its balance sheet to make the investment, and the firm’s equities traders will determine over what period they make the trades, a Goldman spokeswoman said.