US global asset manager Nuveen has agreed a cash acquisition of £9.9 billion ($13.5 billion) for Schroders, the UK asset management, advisory and wealth management giant.
If the deal completes, it will create one of the largest active global asset management firms, with Nuveen's $1.4 trillion of assets under managemenr (AUM) combining with Schroders' $1.1 trilliom to create a firm with nearly $2.5 trillion of AUM with operations across 40 markets.
Chicago-headquartered Nuveen and London-headquartered Schroders will bring together offerings across equities, fixed income, multi-asset, infrastructure, private capital, real estate, and natural capital, together with the wealth management business.
In Asia Pacific (Apac), Nuveen has offices in Hong Kong, Tokyo, Shanghai, Singapore and Sydney, while in the Middle East it has an office in Abu Dhabi. In Apac, Schroders has offices in Australia, mainland China, Hong Kong, Indonesia, Japan, South Korea, Singapore and Taiwan.
“Through this exciting and transformational step for both of our distinguished firms, 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,” said William Huffman, chief executive officer (CEO), Nuveen.
Richard Oldfield, group CEO, Schroders, said: “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 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. Together, we can create an exceptional opportunity to provide clients with a true breadth of high-quality solutions to meet their evolving needs.”
It is expected that for at least 12 months following the completion of the transaction, the Schroders group will continue to operate as a standalone business within the wider Nuveen group.
Schroders will continue to be led by Oldfield, who will report to Huffman and become a member of the Nuveen executive management team.
“The combined group will bring together two successful firms with shared values and highly complementary strengths to create a new global leader in public-to-private investment management. Building on Schroders’ heritage, London will remain at the heart of this enlarged business and the transaction will deliver an attractive premium in cash to our shareholders, reflecting the value of our business and its future prospects. The board of Schroders is confident that this is the right step for our shareholders, clients and people,” said Dame Elizabeth Corley, chair of Schroders.
Under the terms of the transaction, each Schroders shareholder would be entitled to receive cash consideration of £5.90 per Schroders share at completion for a total of £9.5 billion. In addition, Schroders shareholders will be entitled to receive and retain dividend(s) of up to 22 pence (in aggregate) per Schroders share prior to completion.
Nuveen expects that London will serve as the combined group’s non- US headquarters and largest office, with more than 3,100 professionals.
The deal is expected to become effective and close during Q4 2026, subject to the satisfaction or waiver of certain conditions, including the approval by Schroders shareholders and relevant antitrust and regulatory authorities, as set out in full in the transaction announcement.
The Schroders' Principal Shareholder Group Trustee Companies, which comprise four private trust companies which act as the trustees of various trusts settled by certain members of the BNP Paribas is acting as financial advisor to Nuveen, with Clifford Chance acting as legal advisor to Nuveen.
The Schroder family have entered into irrevocable undertakings to vote in favour of the transaction at the upcoming Schroders shareholder meeting in respect of their aggregate holding of approximately 41% of Schroders shares.
