Schroders and Apollo form strategic partnership to expand private market solutions for affluent investors

British asset manager Schroders and U.S.-based Apollo Global Management have formed a strategic partnership to offer new investment products that combine public and private market strategies. The collaboration targets high‑net‑worth individuals in the UK and retirement plan participants in the U.S., aiming to broaden access to private market opportunities while meeting growing demand for diversified income solutions, according to Reuters.

Strategic partnership to deliver hybrid private market products

The alliance brings together Schroders’ experience in traditional and private markets with Apollo’s expertise in alternative investments. Together, the firms plan to create investment products that integrate private assets such as private credit and infrastructure with more conventional public market instruments. This approach is intended to give clients a broader range of returns while managing portfolio risk.

One of the first initiatives under the partnership is the launch of a Collective Investment Trust (CIT) in the United States, aimed at defined contribution retirement plans. The CIT will combine public and private assets to provide a hybrid investment structure that balances growth potential with some liquidity, targeting plan sponsors and participants seeking diversified retirement solutions.

In addition, Schroders will have the ability to direct client capital into selected Apollo strategies, allowing each firm to leverage the other’s strengths. The collaboration also supports the firms’ broader distribution strategies: Schroders can expand the availability of alternative investments to its clients, while Apollo gains access to a wider audience for its private market solutions. This alignment reflects a joint commitment to creating flexible products tailored for sophisticated investors.

Strategic partnership expands access to private markets for investors

The partnership reflects a wider trend in the asset management sector toward expanding access to private market investments. Traditional equity and bond returns have been challenged in recent years, prompting investors and managers to look for alternatives that can offer different risk‑return profiles. Private markets provide potential diversification benefits, though they are typically less liquid and more complex than public investments.

For Schroders, private market offerings are a central component of its growth strategy, with the firm aiming to increase assets under management in alternatives over the next several years. Apollo, meanwhile, has historically focused on institutional clients but has been increasingly developing solutions for wealth and retirement markets. By collaborating, both firms can respond to investor demand for blended solutions that offer exposure to private markets without entirely sacrificing liquidity or transparency.

The creation of hybrid investment vehicles also reflects broader industry innovation. Asset managers are designing structures that allow clients to benefit from private market returns while maintaining some flexibility and access, which can appeal to both high‑net‑worth individuals and retirement plan participants.

Schroders, Apollo, and private markets

Schroders is a London‑based global asset manager with significant experience in both public and private markets. Its Schroders Capital division focuses on alternatives, including private equity, private credit, and real estate, providing clients with tailored investment solutions beyond conventional portfolios.

Apollo Global Management, headquartered in New York, is one of the world’s largest alternative investment firms, with deep expertise in private equity, credit, and real assets. While the firm has primarily served institutional investors, it is increasingly targeting wealth and retirement markets to broaden access to its strategies.

Private markets encompass investments in assets not listed on public exchanges. They can offer attractive diversification and return potential but typically involve longer holding periods, higher risk, and limited liquidity. Traditionally reserved for institutional and very high‑net‑worth investors, private markets are becoming more accessible through hybrid funds and other structured products, such as those Schroders and Apollo are now developing.

The Schroders-Apollo partnership illustrates how established asset managers are adapting to investor demand for diversified, alternative-focused products. By combining their capabilities in public and private markets, the firms aim to deliver hybrid solutions that meet the needs of both wealthy individuals and retirement plan participants. This collaboration highlights the ongoing trend of expanding private market access while balancing risk, liquidity, and return considerations, signaling a strategic shift in wealth and retirement investment offerings.