Apollo Global Management is in preliminary discussions with Schroders about forming a partnership to source private market assets for the UK’s largest standalone money manager, according to a report by Bloomberg.

Senior executives at both firms are engaged in the talks, though no final agreement has been reached. Schroders is also in contact with other prospective partners as it seeks to accelerate growth in alternatives under the leadership of CEO Richard Oldfield. Both firms declined to comment.

The discussions come at a pivotal moment for Schroders, which is undergoing a strategic revamp. Oldfield has announced plans to cut £150m in costs, close at least 10% of the firm’s funds, and exit operations in Brazil, Munich, and Australia. Schroders manages £776.6bn in assets overall, with £71bn in alternatives, though the latter has been growing more slowly than expected.

For Apollo, a partnership with Schroders would extend its global distribution reach as it targets retail and wealth clients. The firm, which manages $840bn in assets, has struck a series of origination partnerships with banks to support its private credit strategy.

The potential tie-up underscores a broader trend of collaboration between private equity managers and traditional asset managers. PGIM recently partnered with Partners Group, Goldman Sachs has teamed up with T. Rowe Price, and Apollo itself has joined forces with EQT and Trade Republic to expand retail access to private markets.

If finalised, the partnership would mark another step in Apollo’s push to align with large distribution platforms, while giving Schroders greater access to private markets as it works to reposition its business.

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