Nuveen is set to acquire Schroders in a cash deal valued at approximately £9.9 billion in a bid to “meet institutional clients’ increasingly diverse needs”.
The agreed terms are for the entire issued and to-be-issued share capital of Schroders, with the transaction expected to complete in Q4 2026.
Currently, Nuveen has $1.4 trillion in assets under management (AUM) while Schroders possesses $1.1 trillion AUM – together, the new entity will be one of largest active asset management firms globally and be active in more than 40 markets.
William Huffman, chief executive, Nuveen, said: “We look forward to welcoming Schroders into the Nuveen family. By bringing our complementary platforms, capabilities, distribution networks, and cultures together, we will
create an extraordinary opportunity to enhance the way we serve our collective clients through access to new markets, bolstered product offerings, and deeper pools of investment talent.
“This transaction is about unlocking new growth opportunities for wealth and institutional investors around the world by giving our leading, differentiated public-to-private platform a broader global presence.”
Nuveen has confirmed that for the first year, Schroders will continue to operate as a standalone business within the wider Nuveen group, and continue to be led by chief executive Richard Oldfield – reporting to Huffman.
Additionally, “in recognition of Schroders’ position as a preeminent financial institution with a deep-rooted history and strong brand,” Nuveen has stated that London is expected to serve as non-US headquarters for the combined group – made up of more than 3,100 individuals.
In an announcement, the firms jointly addressed the strategic rationale, explaining that the entities are well-matched across public and private markets, and together are set to design new solutions, including capabilities across: equities, fixed income, multi-asset, infrastructure, private capital, real estate, and natural capital.
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“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,” said Oldfield.
“The transaction will significantly accelerate our growth plans to create a leading public-to-private platform with enhanced geographic reach and a strengthened balance sheet. Together, we can create an exceptional opportunity to provide clients with a true breadth of high-quality solutions to meet their evolving needs.”