Nuveen to Acquire Schroders for $13.5 Billion, Ending 222 Years of Independence

2026-02-12 companies

London, Thursday, 12 February 2026.
This $13.5 billion deal creates a $2.5 trillion asset management powerhouse, significantly marking the end of 222 years of independence for the historic British firm.

A Historic Consolidation in Asset Management

In a defining moment for the global financial sector, U.S. asset management giant Nuveen has agreed to acquire the historic British firm Schroders in a transaction valued at approximately £9.9 billion ($13.5 billion) [1][2]. Announced today, Thursday, 12 February 2026, this all-cash acquisition represents a massive consolidation play, merging Nuveen’s $1.4 trillion in assets under management (AUM) with Schroders’ $1.1 trillion portfolio [2]. The agreement creates a transatlantic investment powerhouse with nearly $2.5 trillion in combined assets, positioning the new entity among the world’s largest active asset managers [2][4]. This deal effectively ends 222 years of independence for Schroders, a firm established in 1804, as the founding family prepares to sell its controlling 42% stake [1][3].

Market Reaction and Deal Valuation

The markets have responded vigorously to the acquisition news. Following the announcement, shares in Schroders surged, recording a rise of over 28% in morning trading on the London Stock Exchange [3]. Under the terms of the agreement, Schroders shareholders are set to receive 590 pence per share in cash, along with a dividend of up to 22 pence, bringing the total value to 612 pence per share [1]. This valuation represents a significant premium for investors; based on the closing share price of 456 pence recorded on 11 February 2026 [6], the offer implies a premium of approximately 34.211%. Analysts at RBC have noted that this transaction serves as a strong statement on the value of traditional asset management, particularly following a period where Schroders’ shares had faced downward pressure, sinking 30% over the previous five years [1].

Strategic Synergies and Global Reach

The strategic rationale behind this merger focuses on the complementary geographic and operational strengths of both firms. While Nuveen manages 94% of its assets within the Americas, Schroders holds a dominant position in the EMEA region, where almost two-thirds of its £824 billion assets are located [3]. The combination will also create a substantial private markets business managing $414 billion in assets [5]. Furthermore, the deal allows Nuveen, a subsidiary of the Teachers Insurance and Annuity Association of America (TIAA), to enter the insurance-linked securities (ILS) market, capitalizing on Schroders Capital’s specialized ILS team which manages over $6.5 billion [5]. Nuveen CEO William Huffman described the move as a “massive transformational step,” emphasizing the opportunity to unlock growth for wealth and institutional investors through a broader global presence [1][2].

Operational Continuity and Leadership

Despite the shift in ownership, the operational footprint of Schroders will maintain significant continuity. The Schroders brand is to be retained, and London will serve as the combined group’s non-U.S. headquarters, housing approximately 3,100 staff [4][7]. Richard Oldfield, the Group Chief Executive of Schroders, will continue to lead the unit and is set to join the Nuveen Executive Management Team, reporting directly to William Huffman [2]. The firm is expected to operate as a standalone business within the Nuveen group for at least 12 months following the deal’s completion [2]. Subject to regulatory and shareholder approvals, the transaction is scheduled to close in the fourth quarter of 2026 [2][7].

Sources

Mergers Acquisitions Asset Management