Group 1 - Apollo Global Management (APO.US) is in preliminary talks with Schroders Plc, the largest independent asset management company in the UK, to potentially establish a product collaboration [1] - The collaboration may involve Apollo providing asset sources for Schroders, but it does not include any merger or acquisition discussions [1] - Schroders is simultaneously exploring partnerships with other potential collaborators to enhance its product service offerings [1] Group 2 - The rise of low-cost passive investing has prompted active management firms like Schroders to accelerate their expansion into alternative investment businesses, which typically have longer asset holding periods and allow for higher management fees [2] - Several institutions have recently pursued similar collaborations, including PGIM partnering with Partners Group and Goldman Sachs investing up to $1 billion in T. Rowe Price to sell private market products to retail investors [2] - Schroders is undergoing a strategic restructuring under new CEO Richard Oldfield, who aims to revitalize the 221-year-old institution [2] Group 3 - Richard Oldfield has initiated several reforms, including a cost reduction plan of £150 million (approximately $203 million) and the closure of at least 10% of fund products [3] - As of June 30, Schroders managed total assets of approximately £776.6 billion, with its alternative investment division managing £71 billion [3] - Despite growth in the alternative investment sector, its growth rate has not met established targets, although 75% of Schroders' private market investments have outperformed benchmarks over the past five years [3]

Core Viewpoint - Goldman Sachs (GS.US) is set to invest up to $1 billion in T. Rowe Price Group (TROW.US), marking a significant partnership aimed at expanding private market offerings to retail investors, with T. Rowe Price's stock rising over 7% in pre-market trading following the announcement [1]. Group 1: Investment Details - Goldman Sachs will acquire up to 3.5% of T. Rowe Price's shares through a series of open market purchases, making it one of the top five shareholders of the asset management firm [1]. - This investment represents Goldman Sachs' only external investment in an asset management company [1]. Group 2: Market Context - The collaboration comes at a time when traditional asset management firms are increasingly seeking to enter the alternative asset space, which has been dominated by leading private equity firms [1][2]. - T. Rowe Price has faced challenges since 2022, with significant outflows from its funds due to market downturns and a shift towards low-cost index funds and ETFs [2]. Group 3: Future Plans - T. Rowe Price and Goldman Sachs plan to launch a co-branded retirement fund by mid-2026, which will include investments from Oak Hill Advisors and Goldman Sachs' private market strategies [3]. - The partnership aims to provide tailored investment solutions for high-net-worth individuals and lower-wealth clients, with plans to introduce two new strategies encompassing private equity, credit, and infrastructure [3].