One of the City of London’s most established names, Schroders, has agreed to a takeover by U.S. Asset manager Nuveen for £9.9 billion, or $13.5 billion, marking the end of an independent era for the 222-year-old British firm. The deal, announced on , sees Nuveen acquire Schroders at 612 pence per share, a 34% premium to Wednesday’s closing price, including permitted dividends of up to 22 pence per share.
The acquisition, backed by Teachers Insurance and Annuity Association of America (TIAA), will create a global investment powerhouse with enhanced reach across the Americas, Europe and Asia-Pacific. Nuveen stated the combined entity will be a leading public-to-private platform. Schroders shareholders will receive 590 pence in cash per share.
Crucially, the founding family of Schroders, holding a 41% stake through various family trusts, has provided irrevocable undertakings to support the deal. This strong backing from the principal shareholder group significantly reduces the risk of the transaction failing to materialize.
A Shift in the Landscape of Global Asset Management
The takeover reflects a broader trend of consolidation within the asset management industry, driven by factors such as increasing regulatory burdens, the need for scale to compete on pricing, and the desire to offer clients a wider range of investment solutions. U.S. Firms, flush with capital, have been particularly active in acquiring European counterparts.
Schroders, with a market value of approximately $10 billion as of Wednesday’s close, has long been a prominent player in the UK financial sector, managing assets for institutions and individuals worldwide. The firm’s expertise spans a variety of asset classes, including equities, fixed income, and real estate.
Financial Performance and Future Outlook
The announcement of the acquisition coincided with Schroders’ reporting of adjusted operating profit of £756.6 million for 2025, a 25% increase year-over-year. This strong financial performance likely contributed to the attractive valuation achieved in the deal.
Nuveen intends to maintain London as the combined group’s non-U.S. Headquarters, signaling a commitment to the UK market. Richard Oldfield, Schroders’ current CEO, will continue to lead the firm following the completion of the transaction. This continuity of leadership is expected to facilitate a smooth integration process.
Advisory Roles and Deal Structure
BNP Paribas acted as the sole financial advisor to Nuveen in the transaction, while Schroders received advice from Wells Fargo and Barclays. The involvement of these leading investment banks underscores the complexity and significance of the deal.
The deal is subject to regulatory approvals and customary closing conditions. However, with the backing of Schroders’ principal shareholders and the financial strength of Nuveen, the transaction is widely expected to close successfully.
Implications for the UK Financial Sector
The loss of Schroders’ independence represents a symbolic blow to the City of London, which has seen a number of its prominent financial institutions acquired by foreign firms in recent years. While the deal is expected to bring benefits in terms of increased scale and global reach, it also raises questions about the long-term competitiveness of the UK financial sector.
The acquisition is likely to spur further consolidation within the UK asset management industry, as firms seek to achieve the scale necessary to compete in an increasingly competitive global market. It also highlights the attractiveness of UK assets to foreign investors, despite ongoing economic and political uncertainties.
Nuveen’s Strategy and Growth Ambitions
For Nuveen, the acquisition of Schroders represents a significant step in its strategy to expand its global footprint and enhance its investment capabilities. Nuveen, backed by TIAA, has been actively pursuing acquisitions in recent years, with a focus on firms that offer complementary expertise and access to new markets.
The combined entity will benefit from Nuveen’s strong presence in the U.S. Market and Schroders’ established reputation and client base in Europe and Asia-Pacific. This geographic diversification will help to mitigate risk and provide a more stable source of revenue.
“The board of Schroders is confident that this is the right step for our shareholders, clients and people,” said Schroders Chair Elizabeth Corley in a statement. This sentiment underscores the belief that the deal will create long-term value for all stakeholders.
The transaction is currently valued at 9.9 billion pounds, which translates to approximately $13.50 billion based on the exchange rate as of ($1 = 0.7334 pounds).
