Innovative partnership leverages the best of Schroders and Apollo to deliver improved client outcomes, with ambition to reach multi-billion-dollar annual flows across both new and existing clients.
Schroders (LON: SDR) and Apollo (NYSE: APO) today announce a strategic partnership to develop a next generation of innovative wealth and retirement investment solutions aimed at enhancing client choice and outcomes.
The partnership brings together two global leaders, combining Schroders’ active management pedigree in public markets and specialist capabilities across private markets, through Schroders Capital, with the expertise of Apollo’s private markets platform focusing on complementary strengths.
Key initiatives include accelerating and deepening the firms’ offering in the UK wealth market, through the co-creation of new investment products blending public and private market fixed income exposures from across Schroders, Schroders Capital and Apollo. These will seek to provide enhanced income solutions for UK wealth clients, with improved diversification and excess return per unit of risk across the full credit spectrum. The first product is expected to launch later this year. In addition, Schroders will have the opportunity to allocate to Apollo from certain existing client portfolios, with a focus on capabilities that complement Schroders Capital and with the potential to improve client outcomes.
Meanwhile in the US, a Collective Investment Trust for the defined contribution pension market is being prepared for launch in Q2 2026, combining complementary exposures across Schroders Capital and Apollo.
The partnership reflects growing demand globally for hybrid solutions that harness the best of both public and private markets, to help meet growing savings and retirement needs. Successful market testing with potential clients, along with potential flows from existing clients, point to a multi-billion dollar per annum opportunity.
Schroders Group Chief Executive, Richard Oldfield, said: “This partnership is highly complementary, delivering the best of Schroders and Apollo to deliver better outcomes for our clients. It has the potential to offer clients something truly different; innovative investment solutions with the potential to deliver robust, resilient returns, encompassing offerings across the wealth and retirement landscape in the UK and the US.
“We have always said that we would only pursue partnerships which enhance our existing offering and it is clear that this agreement with Apollo meets that criteria. We cannot wait to get started together.”
Apollo Global Management CEO, Marc Rowan, said: “Schroders is a storied institution with deep investment expertise and a reputation for delivering excellent client outcomes. Our complementary capabilities can help address a large and growing societal need for reliable income solutions. Together we look forward to developing the next generation of hybrid products.”
Schroders is a $1 trillion+ asset manager with a deep heritage in public equities and fixed income, and with extensive private market capabilities through Schroders Capital, including across the universe of private debt and credit alternatives where the firm manages more than $38 billion on behalf of clients. In the UK wealth market, Schroders has established itself as a true market leader, spearheading the growth of LTAFs and evergreen structures that enable more investors to benefit from the robust returns and diversification benefits private markets can offer.
Apollo is a leading global asset management and retirement services business. It has approximately $908 billion of assets under management and operates one of the world’s largest alternative credit businesses with a significant focus on private investment grade credit origination.
Source