Two major asset managers announced a strategic collaboration intended to expand their presence in wealth and retirement investing. Schroders, the U.K.-based asset manager, and Apollo, the U.S. private equity firm, said on Monday that they have entered a partnership to design and distribute new investment solutions that combine public and private fixed income strategies.
The joint effort will draw on Schroders overall platform, its Schroders Capital private markets division, and Apollo's private markets expertise. The partners said their first co-developed product is scheduled to launch later this year. In addition, they plan to roll out a Collective Investment Trust in the U.S. during the second quarter.
As part of the agreement, Schroders will have the capacity to allocate capital to Apollo from portfolios it manages for existing clients. The firms characterized the collaboration as a way to build products that blend exposures across public and private fixed income markets by leveraging capabilities from both firms' public and private market operations.
The announcement follows a trend of asset managers seeking to broaden their private markets offerings and to introduce solutions targeted at wealth and retirement investors. The firms did not provide further details on the structure of the initial product, specific allocation frameworks, distribution plans, or the exact timing beyond the windows described for launch and the Collective Investment Trust.
Market participants and clients will likely monitor execution milestones tied to the stated launch timelines and the operational integration across Schroders' public market business, Schroders Capital, and Apollo's private market platform. The agreement establishes a mechanism for Schroders to channel allocations to Apollo from existing client mandates, a provision noted in the partnership announcement.
No additional financial terms, client eligibility rules, or governance arrangements were disclosed in the announcement. The firms framed the partnership as a step toward expanding the suite of retirement and wealth products that leverage both public and private fixed income capabilities.
Editor note: The companies announced the partnership and the plans described above. The article contains information provided by the two firms regarding product launches and the U.S. Collective Investment Trust timeline.