Move ends over two centuries of independence for Britain’s largest standalone asset manager
Asset manager Schroders has agreed to a £9.9bn takeover by American investment firm Nuveen, in a deal that would end over two centuries of independence for the UK’s largest standalone asset manager, reports BritPanorama.
Under the proposed terms, Schroders shareholders will receive 612p per share, comprising a cash payment of 590p and a dividend of 22p. The cash element represents a 29 per cent premium on Wednesday’s closing price of 457p.
The surprise acquisition by Nuveen, the asset management division of Teachers Insurance and Annuity Association of America, is poised to create one of the world’s largest active asset managers with nearly £1.8 trillion in assets under management across institutional and wealth channels.
The Schroders name will be preserved, and London will function as the merged group’s non-US headquarters and largest office. The transaction is anticipated to complete in the fourth quarter of 2026, as reported by City AM.
Richard Oldfield, chief executive of Schroders, stated: “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.”
He added, “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.”
As recently as July, Oldfield had dismissed speculation that the Schroder family, who control nearly half the firm’s shares, were considering offloading the business. “No, there’s no intention of the family to sell,” Oldfield said last year.
Nuveen, which manages $1.4 trillion (£1 trillion) in assets, welcomed the deal, indicating it would unlock “new growth opportunities for wealth and institutional investors around the world”, whilst strengthening its international footprint.
Susannah Streeter, Chief Investment Strategist at Wealth Club, remarked that “the mega takeover… demonstrates how overseas players are sniffing out untapped value in UK companies.” She noted, “With yet another big name turning private, it will be a blow to the London Stock Exchange.”
Streeter observed further: “With global whales swallowing big fish in the UK pond, it limits the availability of listed assets for funds. This is partly why private market opportunities are increasingly attractive, given that opportunities to invest in listed companies are declining.”
The merged entity will operate across more than 40 markets, including several of the world’s leading financial hubs. It is anticipated that for a minimum of 12 months after the deal’s completion, Schroders will continue to function as a standalone entity within the broader Nuveen group.
Schroders will remain under Oldfield’s leadership, who will report to Huffman and join the Nuveen Executive Management Team. The UK asset manager has encountered difficulties in recent years, facing mounting criticism over its elevated cost structure and sluggish organic growth within its private markets division.
The company’s share price has fallen 23 per cent over the past five years and reached a market valuation of $10bn at Wednesday’s close. Nevertheless, in its most recent results, the group achieved a return to organic growth, with over 70 per cent of client assets surpassing competitor performance, delivering its strongest results since 2021.
Assets under management rose six per cent to £823.7bn, up from £778.7bn the previous year, with its public markets business also returning to growth for the first time since 2021, recording net inflows of £3.7bn. Gross inflows hit £142bn.
Schroders has a base in Manchester while its Cazenove Capital arm has offices in Birmingham, Bristol, Chester, Edinburgh, and Leeds.
This significant acquisition not only reshapes the landscape of the UK asset management industry but also highlights the growing trend of foreign investment in British firms. Such strategic moves indicate a broader search for value in a competitive global market.
