U.S.-based Nuveen is acquiring U.K.-based Schroders for £9.9-billion (US$13.4 billion). The deal will create one of the world’s largest active global asset management firms with nearly US$2.5 trillion in assets under management (AUM) across the institutional and wealth channels.
Nuveen currently has US$1.4 trillion in AUM in public and private assets and is a wholly owned subsidiary of Teachers Insurance and Annuity Association of America (TIAA).
Schroders is an active asset manager, advisory and wealth management firm that was founded in 1804. It brings £823.7 billion (US$1.1 trillion) in AUM to the table.
In a release, Nuveen said it will work with Schroders to design “new solutions to meet wealth and institutional clients’ increasingly diverse needs” and provide “more ways to build resilient portfolios through a single platform.” The combined firm will have expanded capabilities across equities, fixed income, multi-asset, infrastructure, private capital, real estate, natural capital and wealth management, it said.
Under the offer, which has been recommended by the Schroders board, shareholders will receive £5.90 per Schroders share, plus a dividend of 22 pence per share. The deal is subject to shareholder and regulatory approvals.
Nuveen CEO William Huffman said in a release the firms have complementary platforms, capabilities, distribution networks and cultures, with the merger creating an opportunity to enhance client offerings through access to new markets and products, 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,” Huffman said.
Schroders group chief executive, Richard Oldfield, pointed to benefits of scale “in a competitive landscape” and a partner that shares his firm’s values.
“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,” he said.
The acquisition is expected to be completed in the final quarter of 2026. Schroders will continue to operate as is for at least 12 months following the acquisition, led by Oldfield, who will also become a member of the Nuveen executive management team.