Schroders, the historic UK fund manager founded in 1804, is set to be acquired by American rival Nuveen in a £9.9 billion deal, marking the end of more than two centuries of independence and delivering another blow to the London Stock Exchange. The transaction will see Nuveen pay 612p per share, a 34 percent premium on Schroders’ closing price of 456p, creating one of the world’s largest asset managers with approximately $2.5 trillion (£1.8 trillion) in assets under management.
The Schroder family, which still controls around 44 percent of the firm, is expected to receive at least £4 billion from the sale. Family members Leonie Schroder and Claire Fitzalan Howard remain on the company’s board. Schroders’ chairman, Dame Elizabeth Corley, said London would continue to serve as the non-US headquarters for the enlarged group and emphasized that the firm’s planned departure from public markets would not diminish its presence in the city.
Executives confirmed there are no plans for “material reductions” in staff and that both Schroders and Nuveen would operate as separate brands following completion, which is expected by the end of the year. Richard Oldfield, Schroders’ chief executive since November 2024, described the acquisition 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.
Nuveen chief executive William Huffman said the deal would create new opportunities for wealth and institutional investors by expanding the firm’s global footprint. Headquartered in Chicago, Nuveen manages $1.4 trillion in assets and will fund the acquisition with cash and £3 billion in debt.
Schroders has been a mainstay of the FTSE 100, but growth has slowed amid changes in the asset management industry. Investors have shifted toward cheaper passive funds, and the firm struggled to compete with US giants such as BlackRock and Blackstone, particularly in higher-margin alternatives like private credit. Its share price hit a decade low of 302p last April, despite a recent cost-cutting programme aiming to save £150 million.
The deal underscores broader consolidation in global asset management and highlights the increasing pull of US capital markets, even as London has traditionally been home to some of the world’s oldest financial institutions. Schroders’ departure from the London market adds to a growing list of high-profile exits from the UK exchange, raising concerns about the City’s ability to retain major listed firms.
Nuveen indicated that any future relisting would likely involve a dual listing in London and an international exchange. Analysts say the acquisition reflects the pressures on mid-sized asset managers to scale up in an environment dominated by global giants, while also providing Schroders with the resources to expand its offerings in private markets and institutional investment.
