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 deliver another setback to the London Stock Exchange.
Nuveen, part of the Teachers Insurance and Annuity Association of America (TIAA), has agreed to acquire Schroders for 612p per share – a 34 per cent premium to the firm’s closing price of 456p. The transaction will create one of the world’s largest asset managers, overseeing around $2.5tn (£1.8tn) in assets.
The deal marks a historic turning point for Schroders, founded in 1804 by John Henry Schroder. The Schroder family still controls roughly 44 per cent of the company and is expected to receive at least £4bn 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 enlarged business” as the combined group’s non-US headquarters, despite the firm’s planned departure from public markets.
Executives said there were no plans for “material reductions” in headcount and that both Schroders and Nuveen would continue to operate as standalone brands following completion, which is expected by year-end.
Richard Oldfield, Schroders’ chief executive since November 2024, described the deal as a strategic response to industry pressures. “In a competitive landscape where scale can help deliver benefits, Nuveen is a partner that shares our values and respects the culture we have built,” he said.
William Huffman, chief executive of Nuveen, said the transaction would “unlock new growth opportunities for wealth and institutional investors” by broadening the firm’s global footprint.
Schroders has long been a fixture of the FTSE 100, but its growth has stalled amid structural changes in the asset management industry. Its share price fell to a decade low of 302p last April as investors shifted towards cheaper passive funds rather than paying higher fees for active stock-picking strategies.
The firm has also struggled to compete with US giants such as BlackRock and Blackstone, which have aggressively expanded into higher-margin alternatives such as private credit.
Although Schroders has pursued acquisitions in private markets, it has failed to translate those investments into sustained shareholder returns. Under Oldfield, the company embarked on a cost-cutting programme targeting £150m in savings.
Schroders’ departure from the London market adds to a growing list of high-profile exits from the UK exchange, intensifying concerns over the City’s ability to retain and attract major listed firms.
Nuveen said that any future relisting would likely involve a dual listing in London and another international exchange.
Headquartered in Chicago, Nuveen manages $1.4tn in assets, with a strong focus on the US market. The acquisition will be funded through cash and £3bn in debt.
For the City of London, the sale of one of its most historic financial institutions underscores the mounting consolidation pressures reshaping global asset management, and the shifting gravitational pull of capital markets towards the United States.
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City stalwart Schroders to be sold to US rival in £9.9bn deal