Schroders and Apollo have entered into a strategic partnership to develop wealth investment solutions for the UK market, aiming to enhance client choice and outcomes.

The partnership looks to combine Schroders’ active management capabilities in public markets and specialist expertise in private markets, through Schroders Capital, with Apollo’s private markets platform capabilities.

The firms announced plans to accelerate and deepen their offering in the UK wealth market through the co-creation of investment products that blend private and public market fixed income exposures from across Schroders, Schroders Capital and Apollo.

These products will aim to provide enhanced income solutions for wealth clients in the UK, with the first expected to launch later this year.

Furthermore, Schroders will be able to allocate to Apollo from certain existing client portfolios, focusing on capabilities that complement Schroders Capital and that have the potential to improve client outcomes.

“This partnership is highly complementary, delivering the best of Schroders and Apollo to deliver better outcomes for our clients,” said Schroders group chief executive, Richard Oldfield.

“It has the potential to offer clients something truly different; innovative investment solutions with the potential to deliver robust, resilient returns, encompassing offerings across the wealth and retirement landscape in the UK and the US.

“We have always said that we would only pursue partnerships which enhance our existing offering and it is clear that this agreement with Apollo meets that criteria. We cannot wait to get started together.”

Apollo Global Management CEO, Marc Rowan, added: “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.”

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