Jesal Mistry: This is an important milestone in a much larger journey we are on at Apollo
Apollo has announced it is set to launch a multi-sector private credit long-term asset fund (LTAF) after the product received Financial Conduct Authority (FCA) authorisation.
The asset manager's LTAF, the CG Apollo Global Diversified Credit LTAF, aims to provide UK defined contribution (DC) schemes with access to a diversified global credit portfolio principally focused on private credit – including private investment grade, large-cap corporate lending and asset-backed finance.
Apollo managing director and UK defined contribution lead Jesal Mistry said: "This is an important milestone in a much larger journey we are on at Apollo to support DC plans that are increasingly seeking to enhance member outcomes and integrate private markets solutions.
"This LTAF is designed with the aim of being an attractive portfolio construction solution, providing access to diversified multi-sector exposure and strong income generation potential."
Apollo said the launch of the LTAF will build on its work building private market solutions for DC plans in the US and Europe – a move it says is helping retirement savers to access the same investment tools that have supported defined benefit pensions.
Apollo managing director and DC lead Stephen Ulian explained: "Retirees around the world face a savings shortfall that we believe private market strategies can help to address, particularly as public markets have become smaller and more concentrated.
"At Apollo, our focus is on bringing diversified private market solutions to plans, with an aim to improve diversification and downside protection and enhance risk-adjusted returns. This LTAF is the latest development in our product portfolio as we build compliant, turnkey solutions for modern DC schemes."
The LTAF is the first sub-fund in Apollo's broader private markets LTAF umbrella. Carne Global Fund Managers serves as the authorised corporate director and alternative investment fund manager to the LTAF umbrella and the fund itself.
Carne Global Fund Managers UK chief executive Robin Cotterill said: "We are delighted to partner with Apollo on this milestone launch, further cementing our collaboration across jurisdictions and reinforcing Carne's leading position in bringing innovative LTAF solutions to market. It also reflects the power of industry collaboration and Carne's mission to deliver best‑in‑class fund governance and operational excellence."
The launch comes after Aviva announced in September that Apollo was among a group of asset management partners selected to allocate capital under My Future Vision, Aviva's default pension investment strategy targeting 20–25% private markets exposure.
Last month, Apollo and Schroders announced a strategic partnership that includes the preparation of a collective investment trust for US DC plans, targeted for launch in the second quarter of this year.
