Opening the Door to Private Markets for More Investors
State Street Global Advisors, the asset management arm of State Street Corporation (NYSE: STT), is teaming up with Apollo Global Management, Inc. (NYSE: APO) to widen investor access to private markets. The goal is straightforward: make investment opportunities that once lived behind high walls—typically reserved for large institutions and the very wealthy—available to more investors, in more practical ways.
Why Private Assets Keep Growing
“Private assets represent one of the fastest-growing segments of the financial sector,” said Ron O’Hanley, State Street’s president and chief executive officer. The attraction is familiar: the potential for higher returns, another source of diversification, and a way to complement public market exposure. This collaboration is designed to do something simple but hard to scale—open more paths into private markets by pairing State Street’s reach with Apollo’s origination and private-market expertise. O’Hanley’s bet is that combining those strengths will let more investors participate in a part of the market that’s been gaining momentum.
Apollo’s View from the Deal Table
Marc Rowan, co-founder and CEO of Apollo Global Management, underscored the same theme from Apollo’s side. “We are pleased to work together to enhance access to private market opportunities, especially in sectors like private investment grade credit.” Investors, he noted, are looking for ways to round out their portfolios with private equity and private fixed income strategies that line up with long-term retirement and investment needs. He expects the partnership to help speed that shift by offering practical, product-based solutions—meeting demand where it is, and where it’s heading.
What Investors Want from Private Markets
Demand has been rising fast. Over the past decade, assets in private markets have climbed by nearly threefold. Large institutions have led the way, drawn by the potential for higher yields and the perception that certain private strategies can hold up during economic turbulence. Newer entrants are focused on something else as well: clearer pricing, more transparency, and—where it’s feasible—better liquidity. That’s pushing product design toward structures that trade more easily while still giving access to private exposures.
Making Access Feel More Democratic
Anna Paglia, chief business officer at State Street Global Advisors, put it plainly: demand is up, but the doors have been narrow. Historically, private opportunities have been concentrated in the hands of large institutions and high-net-worth investors. This collaboration aims to change the mechanics of access—using Exchange-Traded Funds (ETFs) and other vehicles—to bring private market exposures to a broader set of investors. The intent is to make private assets easier to slot into everyday portfolios, not as an exception, but as a considered part of long-term allocation.
What the Partnership Brings Together
By aligning a large-scale global asset manager with a leading originator of private assets, the two firms are setting up a platform to build new entry points, particularly in private credit. The premise is simple: State Street Global Advisors can distribute and structure at scale; Apollo can source and manage private assets across markets. That combination is meant to lower practical barriers and offer investors more ways to access private credit in a controlled, transparent format.
As of June 30, 2024, Apollo reported more than $145 billion in origination over the prior twelve months, supported by a broad credit franchise and originating capabilities across 16 distinct platforms. Its focus on high-quality private credit—including corporate lending and asset-backed finance—supports business growth globally and provides the raw materials for products aimed at long-term investors.
About State Street Global Advisors
For over 40 years, State Street Global Advisors has worked with governments, institutions, and financial advisors around the world. The firm’s approach is grounded in research, rigorous analysis, and an early commitment to index and ETF investing. Today it oversees $4.37 trillion in assets and is recognized as the world’s fourth-largest asset manager. Scale matters here: it helps with product design, operational resilience, and getting new strategies into investors’ hands.
In short, this collaboration between State Street Global Advisors and Apollo Global Management is a practical step toward broader participation in private markets. The aim isn’t a splashy headline; it’s wider access, better tools, and a clearer path for more investors to participate in the growing universe of private assets.
Frequently Asked Questions
Who is partnering to broaden access to private markets?
State Street Global Advisors is collaborating with Apollo Global Management to expand investor access to private market opportunities.
Why are private assets drawing more interest now?
Investors are looking to private markets for potential higher yields, added diversification, and strategies that may hold up during market volatility.
How will ETFs factor into this effort?
ETFs and other investment vehicles are central to the plan, helping democratize access to private assets and integrate them into everyday portfolios.
What did Apollo originate over the last year as of June 30, 2024?
Apollo reported more than $145 billion in origination in the preceding twelve months, supported by its credit business and 16 originating platforms.
How long has State Street Global Advisors been operating?
State Street Global Advisors has served governments, institutions, and financial advisors for more than 40 years.
