Apollo Teams Up With Schroders to Launch Hybrid Income Solutions

Core Insights - Apollo Global Management, Inc. (APO) has formed a strategic partnership with Schroders to create next-generation wealth and retirement investment solutions for clients in the UK and the US [1] Partnership Details - The collaboration merges Apollo's alternative credit and private investment-grade origination platform with Schroders' active management capabilities in public and private markets [2] - A primary focus is on co-creating new investment products for the UK wealth market, blending public and private fixed income exposures [3] - The first product from this partnership is anticipated to launch later this year [3] Capital Allocation and Future Plans - The partnership allows Schroders to allocate capital from existing client portfolios to Apollo's credit capabilities, aiming for improved client outcomes [4] - In the US, a Collective Investment Trust (CIT) targeting the defined contribution pension market is set to launch in the second quarter of 2026, combining private market exposures from both firms [4] Market Demand and Opportunities - The alliance addresses the increasing demand for hybrid solutions that integrate public and private markets to fulfill long-term retirement and savings needs [5] - Successful market testing and expected allocations from existing clients indicate a multi-billion-dollar annual flow opportunity for both companies [5] Leadership Perspective - Marc Rowan, CEO of Apollo, emphasized the partnership's potential to meet the growing societal need for reliable income solutions through complementary capabilities [6] Expansion Efforts - Apollo is actively expanding its private credit and alternative investment capabilities through acquisitions and partnerships, including the acquisition of Bridge Investment Group Holdings and Argo Infrastructure Partners [7][8] - In 2024, Apollo extended its partnership with Mubadala Investment Company and launched a $25 billion private credit program with Citigroup [8] - A $2 billion evergreen origination partnership with Phoenix Holdings was established in 2023 to enhance access to private credit opportunities [10]