T. Rowe Price has agreed to acquire F/m Investments, a fixed income asset manager and ETF specialist with approximately $19 billion in assets under management, expanding its capabilities across ETFs, institutional separate accounts and taxable and municipal separately managed accounts. Financial terms of the transaction were not disclosed.
The acquisition is expected to increase T. Rowe Price’s fixed income AUM by nearly 9% while more than doubling its fixed income ETF assets under management.
The transaction will also expand T. Rowe Price’s fixed income SMA business and strengthen its liquidity, cash management and customized fixed income offerings.
Founded in 2019 and headquartered in Washington, D.C., F/m Investments is affiliated with 1251 Capital Group and has developed a portfolio spanning ETFs, mutual funds and separately managed accounts.
Its US Benchmark Series is the first standardized suite of single-security U.S. Treasury ETFs, providing investors with maturity-specific exposure to individual segments of the Treasury market through ETF structures.
F/m currently offers 20 ETFs covering Treasuries, Treasury Inflation-Protected Securities, corporate bonds and municipal securities.
The company has also introduced the first dual-share class ETF and filed what it describes as a first-of-its-kind application with the SEC for tokenized ETF shares.
F/m also provides customized municipal bond and liquidity strategies to institutional and high-net-worth investors.
Following closing, the business will operate as “F/m Investments, a T. Rowe Price Company.”
F/m will retain its brand, leadership, investment approach and day-to-day operating model.
Alexander Morris will report to Arif Husain, and F/m employees will become T. Rowe Price associates.
T. Rowe Price manages approximately $1.87 trillion in client assets, roughly two-thirds of which are retirement-related, giving F/m access to a significantly larger global distribution platform.
The acquisition is expected to close in early 2027, subject to customary filings and closing conditions.
Dechert advised T. Rowe Price legally. Oppenheimer served as exclusive financial adviser to F/m, while Fried Frank advised F/m’s majority owners.
