Nuveen to Buy U.K. Asset Manager Schroders for $13.5 Billion

Nuveen agreed to bargain U.K. plus manager Schroders for $13.5 billion, bolstering its concern successful Europe with a storied London concern location that dates backmost much than 2 centuries.

The woody is the latest betwixt progressive wealth managers trying to support up with passive concern giants similar BlackRock and Vanguard arsenic good arsenic private-market specialists. The takeover would besides extremity the independency of 1 of London’s past remaining large fiscal dynasties, aft American and European banks swooped connected the City successful the 1980s and 1990s.

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Nuveen, the asset-management limb of the Teachers Insurance and Annuity Association of America, said Thursday the combined radical would oversee astir $2.5 trillion successful assets. That would person placed it 10th successful the planetary rankings, conscionable down Germany’s Allianz, astatine the extremity of 2024, according to an yearly study by the Thinking Ahead Institute, an manufacture group. As of precocious 2025, top-ranked BlackRock managed $14 trillion.

Asset managers person sought to physique standard to upwind relentless unit connected fees, sorb rising costs and pivot toward higher-margin backstage assets. In different caller deal, Nelson Peltz’s Trian Fund Management and task steadfast General Catalyst agreed to bargain Schroders rival Janus Henderson successful December for $7.4 billion.

Buying Schroders could alteration Nuveen, which has astir of its assets successful the Americas, to pat the London-based firm’s clients successful Europe, the Middle East, Africa and Asia. Schroders, meanwhile, would beryllium capable to merchantability its funds to Nuveen’s American customers and entree TIAA’s ample annuities business. Nuveen plans to clasp the Schroders marque successful London.

Part of their strategy would beryllium to articulation with insurers to amass much superior to bulk up successful backstage markets, Schroders said. As things stand, astir 17% of the combined assets of Nuveen and Schroders are successful backstage markets, compared with 30% successful stocks and 25% successful fixed income. Private investments thin to make higher fees and the marketplace has grown rapidly since the 2008 fiscal crisis.

Under the projected deal, Schroders’ shareholders would person up to £6.12, equivalent to astir $8.34, for each of their shares, including dividends. That represents a 34% premium to Schroders’ closing terms connected Wednesday. The banal was up astir 29% successful aboriginal day trading successful London.