Apollo Launches UK Private Credit LTAF for Pensions

Apollo Global Management (NYSE: APO), a prominent global alternative asset manager, has secured regulatory approval from the Financial Conduct Authority (FCA) to launch its inaugural Long-Term Asset Fund (LTAF) in the United Kingdom. This new vehicle, named the CG Apollo Global Diversified Credit LTAF, is specifically designed to open up multi-sector private credit opportunities for UK Defined Contribution (DC) pension schemes, addressing a critical need for enhanced diversification and return potential in retirement savings.

The introduction of the CG Apollo Global Diversified Credit LTAF marks a significant step in democratizing access to private markets for a broader base of investors. Historically, institutional-grade private market strategies, known for their potential for robust income generation and downside protection, have been largely confined to Defined Benefit (DB) pensions and other sophisticated investors. This LTAF aims to bridge that gap, offering a semi-liquid product format that encompasses a highly diversified, global credit portfolio. Key areas of focus include private investment-grade credit, large-cap corporate lending, and asset-backed finance, sectors that have demonstrated resilience and attractive yields in the current market environment.

Jesal Mistry, Apollo's Managing Director and UK Defined Contribution Lead, emphasized the strategic importance of this launch, stating, "This LTAF is engineered to be a compelling portfolio construction solution, delivering diversified multi-sector exposure and strong income generation potential, crucial for improving member outcomes in DC plans." The move aligns with a broader industry trend where DC schemes are increasingly exploring alternative assets to combat the challenges of lower public market returns and persistent inflation, which erode the purchasing power of retirees' savings.

The initiative builds on Apollo's expanding efforts to integrate private market solutions into retirement plans across both the US and Europe. This strategy is particularly pertinent given the growing consensus that public markets have become more concentrated and volatile, necessitating a re-evaluation of traditional portfolio allocations. Stephen Ulian, Apollo's Managing Director and Lead for Defined Contribution, highlighted this shift: "Retirees globally face a savings shortfall, and we believe private market strategies can play a vital role in addressing this, especially as public markets evolve." He added that Apollo's focus remains on providing diversified private market solutions to enhance risk-adjusted returns and improve diversification and downside protection.

The CG Apollo Global Diversified Credit LTAF is the first sub-fund under Apollo's broader Private Markets LTAF umbrella, with Carne Global Fund Managers (UK) Limited serving as the Authorised Corporate Director and Alternative Investment Fund Manager (AIFM). This collaboration underscores the increasing importance of specialized fund governance and operational expertise in navigating complex regulatory landscapes. Robin Cotterill, CEO of Carne Global Fund Managers (UK) Limited, expressed enthusiasm for the partnership, noting its role in bringing innovative LTAF solutions to market.

This launch follows a series of strategic partnerships for Apollo in the retirement solutions space. In September 2025, Aviva selected Apollo as one of its asset management partners for its new default pension investment strategy, My Future Vision, which targets 20–25% private markets exposure. Furthermore, in February 2026, Apollo and Schroders announced a strategic partnership aimed at preparing a Collective Investment Trust for US defined contribution plans, slated for a Q2 2026 launch. These collaborations underscore Apollo's commitment to developing compliant, turnkey private market solutions tailored for modern DC schemes, positioning the firm at the forefront of a significant shift in global retirement investing.