Blue-blooded fund manager Schroders is set to be sold to American rival Nuveen in a £9.9bn deal that will end more than two centuries of independence and mark another setback for the London Stock Exchange.
Nuveen, part of the Teachers Insurance and Annuity Association of America (TIAA), has agreed to acquire Schroders for 612 pence per share – a 34 percent premium to the company’s closing price of 456 pence. The deal will create one of the world’s largest asset managers, managing around $2.5 trillion (£1.8 trillion) in assets.
The deal marks a historic turning point for Schroders, which was founded in 1804 by John Henry Schroder. The Schroder family still controls around 44 percent of the company and is expected to receive at least £4 billion from the sale. Family members Leonie Schroder and Claire Fitzalan Howard currently sit on the board.
Schroders chairman Dame Elizabeth Corley said London would “remain at the heart of this expanded business” as the combined group’s non-US headquarters, despite the company’s planned withdrawal from the public markets.
Executives said there were no plans for “significant reductions” in headcount and that both Schroders and Nuveen would continue to operate as standalone brands following completion, expected by the end of the year.
Richard Oldfield, CEO of Schroders since November 2024, described the deal as a strategic response to industry pressure. “In a competitive environment where size can lead to advantage, Nuveen is a partner that shares our values and respects the culture we have built,” he said.
William Huffman, Nuveen’s chief executive, said the deal will “open up new growth opportunities for wealth and institutional investors” by broadening the company’s global footprint.
Schroders has long been a stalwart of the FTSE 100, but its growth has stalled due to structural changes in the asset management industry. The share price fell to its lowest level in a decade of 302p last April as investors switched to cheaper passive funds rather than paying higher fees for active stock-picking strategies.
The company also struggled to compete with U.S. giants like BlackRock and Blackstone, which were aggressively expanding into higher-margin alternatives like personal loans.
Although Schroders has made acquisitions in private markets, it has failed to translate these investments into sustainable returns for shareholders. Under Oldfield, the company embarked on a cost-cutting program aiming to save £150 million.
Schroders’ exit from the London market joins a growing list of high-profile departures from the UK stock market and heightens concerns about the City’s ability to retain and attract large listed companies.
Nuveen said a future re-listing would likely involve a dual listing in London and another international exchange.
Headquartered in Chicago, Nuveen manages $1.4 trillion in assets with a strong focus on the U.S. market. The takeover will be funded by £3bn of cash and debt.
For the City of London, the sale of one of its most venerable financial institutions underscores the increasing consolidation pressures reshaping global asset management and the shifting pull of capital markets toward the United States.
