Nuveen agrees £9.9bn takeover of Schroders
- Simon Bourke
- 5 days ago
- 6 min read
23rd February 2026
Deal summary
Nuveen, the investment management arm of US pension and insurance group TIAA, has agreed to acquire London-listed Schroders plc in a deal valued at approximately £9.9bn. Under the terms announced on 12 February 2026, Schroders shareholders will receive cash consideration of 590p per share. Shareholders may also retain permitted dividends of up to 22p per share prior to completion, taking the total potential value to 612p. The £9.9bn total transaction value assumes the permitted dividends are declared and paid in full. The combined group will manage nearly $2.5tn in assets across institutional and wealth channels. Completion is expected in Q4 2026, subject to shareholder and court approval and regulatory clearances.
Who is Nuveen?
Nuveen is the investment management arm of TIAA, the US pension and insurance group founded in 1918 to serve the retirement needs of employees at non-profit institutions. With $1.4tn in assets under management as of 31 December 2025, Nuveen has built a substantial alternatives platform spanning real estate, natural capital, infrastructure and private capital.
Who is Schroders?
Schroders is one of the UK's oldest and most recognised financial institutions, founded in 1804 and listed on the London Stock Exchange. Under group chief executive Richard Oldfield, who took up the role in November 2024, the firm manages approximately $1.1tn in assets across active equity, fixed income, multi-asset, private markets and wealth management. Its wealth arm, Cazenove Capital, acquired in 2013 for £424m, serves high net worth clients, with a minimum investment threshold of £1m, and has been extending its position in the family office market. Schroders reported a 25% rise in adjusted operating profits in 2025, to £756.6m, while its AUM grew 6%.
Why is Schroders selling to Nuveen?
Schroders' board has described the transaction as delivering "attractive and certain value" for shareholders while accelerating the firm's standalone strategy. The deal came amidst improving financial performance; adjusted operating profit rose 43% in the second half of 2025 and the cost/income ratio fell below guidance. Several have nonetheless framed the rationale in structural terms, noting that fee compression, passive competition and rising technology costs have made the operating environment increasingly difficult for mid-sized active managers that lack either the scale of the largest global platforms or the differentiation of a specialist boutique.
The combination will bring fixed income assets to roughly 25% of total AUM, up from around 11% at Schroders alone, alongside a $414bn combined private markets franchise, areas where both firms have cited growing client demand as a core part of their rationale. This sits within a broader industry pattern: Morgan Stanley, in a report in October 2025, forecast a "transformative" five-year period of M&A consolidation driven by margin pressure, technology costs and competition for capital. NatWest's £2.7bn acquisition of Evelyn Partners, announced earlier this month, reflected the same dynamic playing out in UK wealth management.
The Cazenove Question
The initial announcement on 12 February 2026 was notably silent on the future of Cazenove Capital, which prompted immediate industry speculation that the wealth manager might be carved out and sold separately. Some argued that running a UK high net worth business sits awkwardly with TIAA's core strategy of achieving institutional scale in public and private markets, and that Cazenove, unlike Evelyn Partners where multiple bidders competed before NatWest succeeded, had not attracted comparable inbound interest. Others took a different view, urging Nuveen to treat Cazenove as a long-term strategic asset on the basis of its brand strength, in-house investment capabilities and growing position in the family office market. The risk of a JP Morgan-style outcome, where considerable investment in the Cazenove brand in investment banking was ultimately followed by its abandonment, was also raised as a cautionary precedent.
However, on 23 February, Oldfield told the Financial Times there was "absolutely no reason to think" Cazenove would be sold, adding that the wealth channel was "really important" to the combined group and was "growing really strongly". He stated that Nuveen's commitments around retaining people, the business and the brand applied to "the whole business", not merely the asset management operations. Nuveen, for its part, noted that both firms share a focus on growing through the wealth channel, and that the deal would support a more globally diversified wealth management proposition, with Nuveen providing US distribution and Schroders contributing wealth client relationships across EMEA and Asia-Pacific.
What happens next?
Subject to shareholder and court approval and regulatory clearances, the deal is expected to complete in Q4 2026, at which point Schroders' listing on the London Stock Exchange will be cancelled and the company will be re-registered as a private limited company. For at least the first 12 months after completion, Schroders will operate as a standalone business within the wider Nuveen group, continuing to be led by Oldfield, who will report to Huffman and join the Nuveen executive management team. Nuveen has stated that no material reductions to Schroders' employee base are planned for two years post-completion, with the exception of reductions arising from the removal of listed-company-focused roles. Over a 12-to-18 month period, Nuveen intends to assess integration options and incentive alignment, with a stated aim of eliminating product overlap rather than wholesale restructuring. Should Schroders or the combined group seek a listing in future, Nuveen has indicated it would seek to include the London Stock Exchange as a dual listing venue.
Frequently asked questions
What are the headlines on Nuveen's acquisition of Schroders?
Nuveen, the investment management arm of US pension group TIAA, has agreed to acquire UK asset manager Schroders for up to approximately £9.9bn. The cash consideration is 590p per share, with shareholders also potentially retaining permitted dividends of up to 22p. The deal was announced on 12 February 2026 and is subject to shareholder and court approval and regulatory clearance; completion is expected in Q4 2026.
Will Schroders keep its name and London headquarters?
Yes. Nuveen has committed to retaining the Schroders brand, with London serving as the combined group's largest non-US office, employing more than 3,100 staff. Upon completion, Schroders' listing on the London Stock Exchange will be cancelled and the company will be re-registered as a private limited company, though Nuveen has said it would seek a London listing were any future IPO to be considered.
What will happen to Cazenove Capital after the Nuveen takeover?
Schroders CEO Richard Oldfield stated on 23 February 2026 that there is "absolutely no reason to think" Cazenove Capital will be sold, and that Nuveen's commitments to retain people, the business and the brand apply to the whole of Schroders. The initial deal announcement had said little about Cazenove specifically, prompting industry speculation about a possible divestiture. It should be noted that a specific commitment to retain the Cazenove brand by name does not appear in the Rule 2.7 announcement; Oldfield's statement to the Financial Times is the basis for confidence on this point.
What will happen to Schroders staff?
Nuveen has stated that no material reductions to Schroders' employee base are planned for two years following completion, with the exception of reductions arising from the removal of listed-company-focused roles. Schroders will operate as a standalone business within Nuveen for at least the first 12 months after completion.
What does the Nuveen/Schroders deal mean for UK financial planning firms?
It reinforces the broader consolidation trend in UK wealth and asset management, demonstrating that credible, well-run businesses continue to attract strong buyer interest and meaningful valuation premiums. It also illustrates the growing appetite of well-capitalised US groups for UK wealth distribution, expanding the pool of potential acquirers for firms considering a sale.
Is the deal definitely going ahead?
The transaction has board approval from both sides and irrevocable undertakings covering approximately 42% of Schroders' share capital from the Schroder family trusts and directors. It requires approval by 75% of shares voted at the scheme meeting, court sanction and regulatory clearance. Other major shareholders have not yet provided irrevocable undertakings, and some have publicly questioned whether the price reflects fair value.
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