Schroders has agreed to a 9.9 billion pound (11.4 billion euro) takeover by US-based Nuveen, ending 222 years of family ownership and marking a further shift in global asset management toward American dominance.
The transaction unites three long institutional legacies shaped by distinct strands of financial history in Europe and the US. Hamburg-born merchant Johann Heinrich Schröder founded his London merchant bank in 1804, building a family-controlled house that evolved into one of Europe’s most established asset managers.
John Nuveen established his firm in 1898 as a Chicago-based municipal bond specialist, rooted in financing public infrastructure across the United States. Privately held TIAA was created in 1918 with the support of steel magnate Andrew Carnegie to provide retirement income for US educators, anchoring its model in long-term pension capital.
In 2014, TIAA acquired Nuveen in a 6.25 billion dollar transaction, positioning it as its global asset management arm. The combined group now brings merchant banking heritage, municipal finance expertise and retirement-driven capital under a single transatlantic platform.
On threshold of global top 10
The strategic implications extend beyond historic symbolism. Nuveen ranks among the top 20 global asset managers by assets under management, while Schroders sits within the top 25. Combined, the enlarged group will oversee approximately 2,500 billion dollars in assets, placing it on the threshold of the global top 10.
In ranking terms, the merged entity overtakes Allianz’s asset management operations and approaches the scale of UBS. It moves ahead of Invesco, Legal & General, Franklin Templeton and Deutsche Bank’s asset management arm, DWS. In an industry increasingly defined by operating leverage, global distribution and technology investment, such scale has become structurally important.
A broader transatlantic pattern
Schroders is not the first European asset manager to cross the Atlantic in terms of ownership during recent years.
In 2017, Denver-based Janus Capital and Henderson combined in a transatlantic merger that effectively repositioned the UK-listed group within a U.S.-centric framework. In 2022, Goldman Sachs acquired NN Investment Partners, bringing a major Dutch asset manager under Wall Street ownership. Aegon Asset Management has also gradually shifted its center of gravity away from the Netherlands, operating increasingly under the U.S.-based Transamerica label.
Each transaction had its own strategic rationale. Taken together, they point to a broader structural trend: European asset management franchises becoming embedded within American balance sheets, distribution networks, and retirement ecosystems.
Strategic rationale
Richard Oldfield, chief executive officer of Schroders, framed the combination as strategically coherent. “These really are two jigsaw pieces that fit together not just in terms of industrial logic but also in terms of culture and values,” he said.
William Huffman, chief executive officer of Nuveen, said the deal would expand the group’s global reach. “This transaction is about unlocking new growth opportunities for wealth and institutional investors around the world by giving our leading, differentiated public-to-private platform a broader global presence,” he said in a statement.
Accelerating ambitions
Oldfield told analysts that Schroders had not been conducting a sale process and remained confident in its standalone transformation plan. “This business has never been up for sale,” he said. Conversations with Nuveen, he explained, evolved as the strategic logic became clearer.
“What emerged as we had conversations with Nuveen was that we felt this was a very competent business that could accelerate our aspirations by candidly I think a decade,” Oldfield said. “That’s why when we had the conversation it became clear that we could create something pretty unique in the industry and that’s how we came to receiving an offer.”
Sector specialists on Thursday suggested other top 20 asset managers such as Franklin Templeton, Invesco and London-based L&G could also have been interested in Schroders.
Oldfield, who joined Schroders last year from PwC, argued that combining Nuveen’s US distribution strength and broader private markets platform with Schroders’ public markets franchise and international footprint would have taken many years to replicate organically. The transaction, he said, is intended to accelerate growth rather than deliver large cost savings.
Johanna Kyrklund, group chief investment officer at Schroders, described the alignment as structural rather than opportunistic. “Schroders and Nuveen are very complementary businesses,” she said, “with mirror opposite geographic footprints and investment capabilities. That makes for a natural, strategic fit.”
RBC analyst Ben Bathurst, in comments to Citywire, described the approach as a “bolt-from-the-blue,” reflecting limited market speculation ahead of the announcement. Asset management specialists speaking to Investment Officer on Thursday also described the transaction as significant industry news and as unexpected.
Pressure and positioning
Schroders has in recent years faced margin pressure and heightened competition from lower-cost US rivals. The firm announced a 150 million pound cost-cutting program last year and streamlined parts of its business, including withdrawing from selected international operations and restructuring joint ventures.
Dame Elizabeth Corley, chair of Schroders, emphasized continuity alongside shareholder value. “Building on Schroders’ heritage, London will remain at the heart of this enlarged business and the transaction will deliver an attractive premium in cash to our shareholders, reflecting the value of our business and its future prospects,” she said.
London is expected to remain Schroders’ main office, employing around 3,100 staff. The brand will be retained within the enlarged group as “Schroders, a TIAA company.” Nuveen employs approximately 3,000 people.