Global asset management firms Schroders and Apollo have announced a strategic partnership to develop investment solutions targeting the wealth and retirement markets. The collaboration will combine Schroders’ public market expertise, including its private markets division Schroders Capital, with Apollo’s specialized private market capabilities to create hybrid investment products for clients in the United Kingdom and United States.
According to the companies, the partnership will initially focus on expanding their offering in the UK wealth sector, with the first joint product expected to launch later this year. The firms plan to jointly develop new investment vehicles that integrate both public and private fixed income assets from Schroders, Schroders Capital, and Apollo.
Hybrid Investment Solutions for Diversification
The new products are designed to provide UK clients with enhanced diversification and risk-adjusted returns across various credit sectors. By combining public and private market strategies, the partnership aims to address what executives describe as a growing societal need for reliable income solutions in the wealth and retirement space.
Apollo Global Management CEO Marc Rowan highlighted the complementary nature of the collaboration. “Schroders is a storied institution with deep investment expertise and a reputation for delivering excellent client outcomes,” Rowan said, adding that their combined capabilities can help develop the next generation of hybrid products.
US Retirement Market Expansion
Meanwhile, the firms are preparing a Collective Investment Trust for the defined contribution pension sector in the United States. This vehicle, scheduled for launch in the second quarter of 2026, will leverage resources from both Schroders Capital and Apollo to serve retirement plan participants.
Additionally, Schroders plans to allocate funds managed for certain clients to Apollo, focusing specifically on investment strategies that complement existing offerings from Schroders Capital. This approach aims to broaden the range of private market opportunities available to Schroders’ client base.
Scale and Capabilities Behind the Partnership
The partnership brings together significant asset management scale and expertise. Apollo manages approximately $908 billion in assets and specializes in asset management and retirement services, with particular strength in private credit and alternative investments.
However, Schroders also brings substantial resources to the collaboration, managing assets exceeding $1 trillion, including more than $38 billion in private debt and alternative credit through Schroders Capital. Last year, the firm completed the transfer of its Personal Wealth division to Lloyds Banking Group, repositioning its focus on institutional and wholesale wealth management.
Strategic Rationale and Client Benefits
Schroders Group chief executive Richard Oldfield emphasized the strategic fit of the partnership. “This partnership is highly complementary, delivering the best of Schroders and Apollo to deliver better outcomes for our clients,” Oldfield stated, noting that the collaboration has potential to offer clients innovative investment solutions with robust, resilient returns.
In contrast to typical asset management partnerships, this agreement encompasses offerings across both the wealth and retirement landscape in two major markets. Oldfield added that Schroders would only pursue partnerships that enhance their existing offering, and the Apollo agreement clearly meets that criteria.
The collaboration reflects broader industry trends toward hybrid investment solutions that blend public and private markets. As traditional fixed income yields remain a focus for wealth and retirement investors, combining liquid public market exposure with less correlated private credit opportunities has become increasingly attractive.
The first jointly developed product for the UK wealth market is expected to become available later this year, though specific details about the investment strategy, fee structure, and minimum investment requirements have not yet been disclosed by either firm.
