Schroders, Apollo Partner on Hybrid Investment Push
Schroders and Apollo Global Management have unveiled a transatlantic strategic partnership aimed at reshaping wealth and retirement investment offerings, with ambitions to generate multi-billion-dollar annual inflows.
The collaboration brings together Schroders’ long-established expertise in public markets and its private markets arm, Schroders Capital, with Apollo’s scale in alternative credit and private investment-grade origination. The firms intend to co-develop hybrid investment solutions blending public and private fixed income, targeting improved diversification and more consistent income streams for clients.
Initial efforts will focus on the UK wealth market, where new co-branded products are expected to launch later in 2026. These strategies will span the full credit spectrum, aiming to enhance returns relative to risk while addressing growing demand for income-oriented investments. Schroders will also be able to allocate assets from existing client portfolios into Apollo-managed strategies where complementary capabilities exist.
In the US, the partnership will extend into retirement markets through the planned launch of a Collective Investment Trust for defined contribution schemes in the second quarter of 2026, combining capabilities from both firms’ private markets platforms.
The tie-up reflects a broader industry shift toward “hybrid” investment solutions that integrate public and private assets, as asset managers respond to increasing demand for yield and portfolio resilience in a low-growth, uncertain macroeconomic environment.
Chief executives Richard Oldfield and Marc Rowan both emphasised the complementary nature of the partnership, highlighting its potential to deliver differentiated products and improved client outcomes across key markets.
With Schroders managing more than $1 trillion in assets and Apollo overseeing approximately $908 billion, the firms are positioning the alliance to capture a significant share of rising global demand for income-focused and retirement-oriented investment solutions.
