Apollo Global Management is in early-stage discussions with UK asset manager Schroders over a potential private markets product partnership, according to a report by Bloomberg citing unnamed people familiar with the matter.
The talks, which remain preliminary, could see Apollo source assets for Schroders’ clients, though no agreement has yet been reached.
The move comes as Schroders, managing £776.6bn in assets, seeks to strengthen its alternatives platform under new CEO Richard Oldfield. The firm is targeting efficiency gains and portfolio simplification, having already closed funds, cut jobs, and exited certain non-core businesses. Its alternatives unit oversaw £71bn at mid-year, with most private markets strategies outperforming benchmarks but still falling short of growth targets.
Partnerships are a key pillar of Oldfield’s strategy as active managers look to counter pressure from low-cost passive investing. Schroders has previously launched a joint venture with Phoenix Group to channel pension assets into private markets.
Apollo, with $840bn AUM, has been aggressively expanding its distribution reach beyond institutions. The firm has secured origination tie-ups with banks and retail-focused partners, most recently with German broker Trade Republic.
The talks mirror a wider trend of tie-ups between traditional managers and private capital firms. This month alone, PGIM partnered with Partners Group on alternatives distribution, while Goldman Sachs invested $1bn into T Rowe Price as part of a private-markets collaboration.
