Core Viewpoint - Apollo Global Management and Schroders are collaborating to develop funds aimed at wealth and pension clients, with expectations to raise billions of dollars annually through this strategic partnership [1][3]. Group 1: Partnership Details - Apollo will work with London-based Schroders to provide new investment products for UK wealth investors, with the first product expected to launch later this year [1][3]. - The two companies plan to introduce a collective fund to the US pension market in the second quarter [1][3]. - Schroders may allocate funds from its existing client portfolios to Apollo [1][3]. Group 2: Market Context - The rise of low-cost passive investing has prompted active asset management firms like Schroders to expand into alternative investments, which typically have longer holding periods and higher fees [1][3]. - Alternative asset management firms, traditionally focused on institutional investors, are increasingly targeting private wealth, leading to collaborations with companies that cater to retail investors [1][3]. Group 3: Industry Trends - Other firms are also forming partnerships to create investment tools for retail investors, such as Capital Group's collaboration with KKR & Co. for target-date funds aimed at retirement plans [1][3]. - In the UK, Legal & General Group Plc has partnered with Blackstone to establish a private credit partnership, aiming to grow to $20 billion over time [1][3]. Group 4: Current Market Concerns - The collaboration between Apollo and Schroders comes amid investor concerns regarding private equity firms' exposure to software companies, as software stocks have recently experienced significant declines [2][4].