American investment firm Nuveen has finalized a £9.9 billion takeover of UK asset manager Schroders, marking the end of over two centuries of independence for the country’s largest standalone asset management firm. Shareholders of Schroders will receive 612 pence per share, which includes a cash consideration of 590 pence and a dividend of 22 pence. This cash offer reflects a generous premium of 29 percent based on Schroders’ closing price of 457 pence on the previous Wednesday.
The acquisition positions Nuveen, the asset management arm of the Teachers Insurance and Annuity Association of America, to create one of the world’s largest active asset managers, with nearly £1.8 trillion in assets under management across both institutional and wealth channels. Following the acquisition, the Schroders brand will remain intact, and London will be designated as the combined entity’s non-US headquarters and largest office. The deal is projected to conclude in the fourth quarter of 2026.
Strategic Vision and Market Response
Richard Oldfield, Chief Executive of Schroders, expressed optimism about the partnership. He noted, “In a competitive landscape where scale can help deliver benefits, in Nuveen we see a partner that shares our values, respects the culture we have built and will create exciting opportunities for our clients and people.” Oldfield emphasized that the transaction would significantly accelerate Schroders’ growth plans, enabling the company to develop a leading public-to-private platform with enhanced geographic reach and a fortified balance sheet.
In July 2023, Oldfield had dismissed speculation regarding a potential sale of the firm, affirming the Schroder family’s commitment to maintaining control. “No, there’s no intention of the family to sell,” he stated at the time, highlighting the family’s support and their long-term vision for the business.
Nuveen, which currently manages assets worth approximately $1.4 trillion (£1 trillion), also welcomed the acquisition. The firm indicated that this strategic move would unlock new growth opportunities for both wealth and institutional investors globally, thereby enhancing its global footprint. The combined entity will operate in over 40 markets, including major financial centers worldwide.
Schroders’ Recent Performance and Challenges
Despite its impressive legacy, Schroders has faced challenges in recent years, grappling with a high cost structure and slower organic growth in its private markets division. Over the past five years, the firm’s share price has declined by 23 percent, culminating in a market capitalization of $10 billion as of Wednesday’s close.
Nonetheless, Schroders recently reported a return to organic growth, with over 70 percent of its client assets outperforming competitors, showcasing its strongest performance since 2021. The firm’s assets under management rose by six percent to £823.7 billion, up from £778.7 billion the previous year. Additionally, its public markets division reported net inflows of £3.7 billion, marking a turnaround for the first time since 2021, with gross inflows reaching £142 billion.
As the acquisition progresses, Schroders is expected to operate as a standalone business within the broader Nuveen group for at least 12 months following the deal’s completion. Oldfield will continue to lead the firm and will report to the Nuveen Executive Management Team, ensuring a seamless transition as both companies work towards a unified vision in the competitive asset management landscape.
