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State Street Collaborates With Apollo, Enhances Private Markets Access
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State Street Corp.’s (STT - Free Report) asset management business, State Street Global Advisors, announced its partnership with Apollo Global Management Inc. (APO - Free Report) and its affiliates to enhance investors' accessibility to private market opportunities.
Rationale Behind State Street’s Collaboration
Apollo specializes in high-quality private credit origination that includes both corporate lending and asset-backed finance. As of June 30, 2024, APO reported $146 billion of debt origination in the last 12 months, aided by its credit business and broader origination ecosystem.
Per Ernst & Young, private market assets have roughly increased by three times over the last decade driven by institutional investors’ increased preference for higher yields and greater diversification alongside their demonstrated resilience during volatile markets.
By leveraging the strengths of STT and APO, this strategic alliance is set to pave the way for investors to invest in private markets, thus appealing to a wider client base.
Anna Paglia, chief business officer at State Street Global Advisors, stated, “We are pleased to be working with Apollo to democratize access to private asset exposures through ETFs and other investment products advised by State Street Global Advisors, making them more accessible to a wider swathe of investors who seek the benefits of private market investments.”
This move is in line with State Street’s growth strategy. Through the launch of State Street Digital and State Street Alpha, the company is actively introducing innovative products and services. It entered into strategic partnerships with Taurus SA last month and with Galaxy Asset Management in June to enhance its crypto solutions. Further, the company acquired CF Global Trading this February and Mercatus in 2021. These efforts signify STT’s inorganic growth efforts to strengthen its market share.
STT’s Zacks Rank & Price Performance
Year to date, shares of State Street have risen 7.6% compared with the industry’s 19.4% growth.
Earlier this week, Huntington Bancshares Inc. (HBAN - Free Report) announced plans to expand its banking franchise in North Carolina and South Carolina. The bank intends to add more than 350 employees across varied business divisions and launch roughly 55 retail branches within the next five years.
This move furthers the company’s presence and investment in the region and supports the bank’s strategic plan and long-term growth efforts. The bank aims to capture an estimated $8 billion long-term deposit market.
Huntington's full-scale retail expansion into the Carolinas complements its ongoing multi-million dollar and multi-year plan to expand its banking franchise in numerous strategic markets, including Denver, Minneapolis and Chicago.
Similarly, per The Guardian report, HSBC Holdings plc (HSBC - Free Report) seeks a larger share of the wealth management market in the U.K. The bank has gone on a hiring spree to recruit hundreds of bankers to serve the ultra-rich.
HSBC aims to strengthen the U.K. arm of its wealth and private banking operations by recruiting more relationship managers who offer bespoke services and advice to rich clients in exchange for lucrative fees.
The bankers that are being recruited will be given the task of doubling the assets under management at HSBC’s British wealth business to £100 billion in the next five years.
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State Street Collaborates With Apollo, Enhances Private Markets Access
State Street Corp.’s (STT - Free Report) asset management business, State Street Global Advisors, announced its partnership with Apollo Global Management Inc. (APO - Free Report) and its affiliates to enhance investors' accessibility to private market opportunities.
Rationale Behind State Street’s Collaboration
Apollo specializes in high-quality private credit origination that includes both corporate lending and asset-backed finance. As of June 30, 2024, APO reported $146 billion of debt origination in the last 12 months, aided by its credit business and broader origination ecosystem.
Per Ernst & Young, private market assets have roughly increased by three times over the last decade driven by institutional investors’ increased preference for higher yields and greater diversification alongside their demonstrated resilience during volatile markets.
By leveraging the strengths of STT and APO, this strategic alliance is set to pave the way for investors to invest in private markets, thus appealing to a wider client base.
Anna Paglia, chief business officer at State Street Global Advisors, stated, “We are pleased to be working with Apollo to democratize access to private asset exposures through ETFs and other investment products advised by State Street Global Advisors, making them more accessible to a wider swathe of investors who seek the benefits of private market investments.”
This move is in line with State Street’s growth strategy. Through the launch of State Street Digital and State Street Alpha, the company is actively introducing innovative products and services. It entered into strategic partnerships with Taurus SA last month and with Galaxy Asset Management in June to enhance its crypto solutions. Further, the company acquired CF Global Trading this February and Mercatus in 2021. These efforts signify STT’s inorganic growth efforts to strengthen its market share.
STT’s Zacks Rank & Price Performance
Year to date, shares of State Street have risen 7.6% compared with the industry’s 19.4% growth.
Image Source: Zacks Investment Research
Currently, STT carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Restructuring Initiatives by Other Finance Firms
Earlier this week, Huntington Bancshares Inc. (HBAN - Free Report) announced plans to expand its banking franchise in North Carolina and South Carolina. The bank intends to add more than 350 employees across varied business divisions and launch roughly 55 retail branches within the next five years.
This move furthers the company’s presence and investment in the region and supports the bank’s strategic plan and long-term growth efforts. The bank aims to capture an estimated $8 billion long-term deposit market.
Huntington's full-scale retail expansion into the Carolinas complements its ongoing multi-million dollar and multi-year plan to expand its banking franchise in numerous strategic markets, including Denver, Minneapolis and Chicago.
Similarly, per The Guardian report, HSBC Holdings plc (HSBC - Free Report) seeks a larger share of the wealth management market in the U.K. The bank has gone on a hiring spree to recruit hundreds of bankers to serve the ultra-rich.
HSBC aims to strengthen the U.K. arm of its wealth and private banking operations by recruiting more relationship managers who offer bespoke services and advice to rich clients in exchange for lucrative fees.
The bankers that are being recruited will be given the task of doubling the assets under management at HSBC’s British wealth business to £100 billion in the next five years.