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Apollo Teams Up With Schroders to Launch Hybrid Income Solutions
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Key Takeaways
Apollo teams with Schroders to co-create hybrid income products for UK and US clients.
New offerings will combine public and private fixed income to enhance diversification.
US CIT launch in 2026 targets defined contribution pensions with Schroders Capital exposures.
Apollo Global Management, Inc. (APO - Free Report) has entered into a strategic partnership with Schroders to develop next-generation wealth and retirement investment solutions for institutional and wealth clients across the United Kingdom and the United States.
APO’s Partnership Details
The collaboration combines Apollo’s large alternative credit and private investment-grade origination platform with Schroders’ strong active management capabilities in public markets and specialist private markets expertise through Schroders Capital.
A major focus of the partnership is the co-creation of new investment products for the UK wealth market. These products will blend public and private markets fixed income exposures across Schroders, Schroders Capital and Apollo. These products aim to provide enhanced income solutions with better diversification and improved risk-adjusted returns across the credit spectrum. The first product is expected later this year.
The deal also allows Schroders to allocate capital from existing client portfolios to Apollo’s credit capabilities, targeting solutions that deliver better client outcomes.
In the United States, the firms are also preparing to launch a Collective Investment Trust (CIT) for the defined contribution pension market in the second quarter of 2026. It will combine complementary private markets exposures from Schroders Capital and Apollo to meet growing retirement income needs.
Rationale Behind the Apollo–Schroders Partnership
The alliance addresses rising demand for hybrid solutions that blend public and private markets to meet long-term retirement and savings needs. Further, successful market testing and expected allocations from existing clients highlight a multi-billion-dollar annual flow opportunity for both companies.
Marc Rowan, CEO of Apollo, stated that, “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.”
Through this partnership, APO is set to broaden distribution of its private investment-grade credit and alternative credit capabilities into new wealth and retirement channels. It is also expected to strengthen its presence in the UK wealth market and the U.S. defined contribution segment while improving client access to diversified, income-focused solutions.
Apollo’s Other Efforts to Expand Distribution Reach
The company continues to expand its private credit and alternative investment capabilities through acquisitions and partnerships. In September 2025, it acquired Bridge Investment Group Holdings to enhance its real estate platform and support long-term fee-based revenue growth. Earlier, in January 2025, it agreed to acquire Argo Infrastructure Partners to deepen origination and asset management capabilities in high-growth sectors.
In 2024, the company extended its multi-billion-dollar partnership with Mubadala Investment Company to boost global origination opportunities. During the same year, it launched a $25-billion private credit and direct lending program with Citigroup, and teamed up with State Street Global Advisors to improve investor access to private market strategies.
Earlier, in 2023, it established a $2-billion evergreen origination and co-investment partnership with Phoenix Holdings in Israel, providing the insurer access to Apollo’s private credit opportunities. These efforts continue to broaden global distribution and strengthen its position in private investment-grade and hybrid credit solutions.
APO’s Zacks Rank & Price Performance
Over the past six months, shares of Apollo have plunged 8.4% compared with the industry’s decline of 12.3%.
In December 2025, Goldman Sachs Asset Management (GS - Free Report) and T. Rowe Price Group, Inc. (TROW - Free Report) officially launched their first co-branded model portfolios, marking the initial phase of the firms’ strategic alliance announced in September 2025. The portfolios are designed to provide advisors serving mass-affluent and high-net-worth clients with diversified investment solutions that leverage the strengths of both asset managers.
The launch follows GS’ $1 billion strategic investment in TROW, announced in September 2025, aimed at jointly developing new investment products and expanding wealth-channel offerings. The collaboration is expected to strengthen advisor confidence and help investors achieve better long-term outcomes.
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Apollo Teams Up With Schroders to Launch Hybrid Income Solutions
Key Takeaways
Apollo Global Management, Inc. (APO - Free Report) has entered into a strategic partnership with Schroders to develop next-generation wealth and retirement investment solutions for institutional and wealth clients across the United Kingdom and the United States.
APO’s Partnership Details
The collaboration combines Apollo’s large alternative credit and private investment-grade origination platform with Schroders’ strong active management capabilities in public markets and specialist private markets expertise through Schroders Capital.
A major focus of the partnership is the co-creation of new investment products for the UK wealth market. These products will blend public and private markets fixed income exposures across Schroders, Schroders Capital and Apollo. These products aim to provide enhanced income solutions with better diversification and improved risk-adjusted returns across the credit spectrum. The first product is expected later this year.
The deal also allows Schroders to allocate capital from existing client portfolios to Apollo’s credit capabilities, targeting solutions that deliver better client outcomes.
In the United States, the firms are also preparing to launch a Collective Investment Trust (CIT) for the defined contribution pension market in the second quarter of 2026. It will combine complementary private markets exposures from Schroders Capital and Apollo to meet growing retirement income needs.
Rationale Behind the Apollo–Schroders Partnership
The alliance addresses rising demand for hybrid solutions that blend public and private markets to meet long-term retirement and savings needs. Further, successful market testing and expected allocations from existing clients highlight a multi-billion-dollar annual flow opportunity for both companies.
Marc Rowan, CEO of Apollo, stated that, “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.”
Through this partnership, APO is set to broaden distribution of its private investment-grade credit and alternative credit capabilities into new wealth and retirement channels. It is also expected to strengthen its presence in the UK wealth market and the U.S. defined contribution segment while improving client access to diversified, income-focused solutions.
Apollo’s Other Efforts to Expand Distribution Reach
The company continues to expand its private credit and alternative investment capabilities through acquisitions and partnerships. In September 2025, it acquired Bridge Investment Group Holdings to enhance its real estate platform and support long-term fee-based revenue growth. Earlier, in January 2025, it agreed to acquire Argo Infrastructure Partners to deepen origination and asset management capabilities in high-growth sectors.
In 2024, the company extended its multi-billion-dollar partnership with Mubadala Investment Company to boost global origination opportunities. During the same year, it launched a $25-billion private credit and direct lending program with Citigroup, and teamed up with State Street Global Advisors to improve investor access to private market strategies.
Earlier, in 2023, it established a $2-billion evergreen origination and co-investment partnership with Phoenix Holdings in Israel, providing the insurer access to Apollo’s private credit opportunities. These efforts continue to broaden global distribution and strengthen its position in private investment-grade and hybrid credit solutions.
APO’s Zacks Rank & Price Performance
Over the past six months, shares of Apollo have plunged 8.4% compared with the industry’s decline of 12.3%.
Image Source: Zacks Investment Research
Currently, APO carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Similar Steps Taken by Other Finance Firms
In December 2025, Goldman Sachs Asset Management (GS - Free Report) and T. Rowe Price Group, Inc. (TROW - Free Report) officially launched their first co-branded model portfolios, marking the initial phase of the firms’ strategic alliance announced in September 2025. The portfolios are designed to provide advisors serving mass-affluent and high-net-worth clients with diversified investment solutions that leverage the strengths of both asset managers.
The launch follows GS’ $1 billion strategic investment in TROW, announced in September 2025, aimed at jointly developing new investment products and expanding wealth-channel offerings. The collaboration is expected to strengthen advisor confidence and help investors achieve better long-term outcomes.