Schroders Sells $13.5 Billion Stake to Nuveen, Exiting Family Ownership

In a significant move within the asset management sector, British firm Schroders has entered a deal to sell a substantial portion of its shareholding to the American asset manager Nuveen. This transaction, valued at approximately £9.9 billion ($13.5 billion), will culminate in the end of family ownership that has persisted for over two centuries.

Schroders and Nuveen: A New Era in Asset Management

This acquisition will establish a combined entity with assets under management (AUM) totaling $2.5 trillion, making it one of the largest deals in the history of the European asset management sector. Schroders’ stock rose by 29% during morning trading following the announcement.

Details of the Deal

• Valuation: Schroders shareholders will receive 590 pence per share in cash and dividends, equating to a total valuation of 612 pence per share.
• Premium: This offer represents a 34% increase over Schroders’ stock price prior to the announcement.
• Stake Sales: The founding family will divest a 42% stake as part of this acquisition.

Bill Huffman, CEO of Nuveen, described the deal as a transformative step that would enhance the global reach of both firms. As the asset management market increasingly consolidates, larger companies like BlackRock and Vanguard have pressured mid-sized firms such as Schroders to merge for improved competitiveness.

Impacts on the Industry

RBC analysts noted that this acquisition might positively influence the broader asset management landscape, reinforcing the value of traditional asset management entities. However, the history of mergers and acquisitions in this sector is not without challenges; past integrations have often led to difficulties.

Despite the potential benefits, analysts caution that mid-sized firms like Schroders face increasing pressure from cash-intensive U.S. companies that may seek further acquisitions. Furthermore, while the combined AUM places the new group below Europe’s largest fund manager, Amundi, it still trails significantly behind American giants such as BlackRock and Vanguard.

Performance and Leadership Post-Acquisition

As of 2025, Schroders reported an adjusted operating profit of £756.6 million, reflecting a 25% increase from the previous year. Richard Oldfield, the current CEO of Schroders, will continue to lead the firm even after the acquisition is finalized. The company’s headquarters in London will remain its primary operational base.

As the industry evolves, the implications of this monumental deal could redefine the competitive landscape of asset management, paving the way for further consolidation among smaller players.