Schroders and Apollo have formed a strategic partnership to develop new wealth and retirement investment solutions meant to enhance client choice and outcomes.
The partnership combines Schroders' active management expertise in public markets and specialist capabilities across private markets, through Schroders Capital, with Apollo's private markets platform.
The firms plan to accelerate and deepen their offering in the U.K. wealth market by creating new investment products blending public and private market fixed income exposures. These will seek to provide enhanced income solutions for U.K. wealth clients, with improved diversification and excess return across the credit spectrum.
They expect to launch the first product later in the year.
In the U.S., the firms are preparing to launch a collective investment trust for the defined contribution plan market in the second quarter.
The partnership reflects growing demand globally for public and private market hybrid solutions, Apollo and Schroders said, calling the partnership a multibillion-dollar a year opportunity.
"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 U.K. and the U.S.," Schroders Group CEO Richard Oldfield said.
"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," he added.
"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," Apollo Global Management CEO Marc Rowan said.
Schroders manages more than $1 trillion, while global asset manager Apollo has about $908 billion of assets under management.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.