Landmark Move in Asset Management: Nuveen Acquires Schroders

The announcement came as a surprise: U.S.-based asset manager Nuveen is taking over British asset manager Schroders. The purchase price amounts to 13,5 billion dollar, the two companies announced on Thursday.

The newly formed player will manage assets totaling approximately 2,5 trillion dollar.

«The business models of Nuveen and Schroders are highly complementary. The transaction offers the opportunity to combine respective strengths, accelerate growth, better serve clients, and create one of the world’s largest global active asset managers,» Schroders said in a statement.

Schroders Brand to Remain

According to the companies, the Schroders brand will be retained. London will serve as the headquarters outside the United States and as the largest location of the combined group, employing around 3’100 staff.

The combined group expects significant benefits for the UK financial center, including stronger capital allocation to the real economy. Should a future IPO of Schroders or the combined group be considered, Nuveen and Bidco intend to pursue a listing on the London Stock Exchange as one of the dual listing venues.

The transaction is expected to close in the fourth quarter of this year, subject to regulatory and shareholder approval.

Implications for Switzerland?

«By bringing together our complementary platforms, capabilities, distribution networks, and cultures, we are creating an exceptional opportunity to provide our clients worldwide with access to new markets, an expanded product offering, and deeper pools of investment talent,» said Nuveen CEO William Huffman.

«In an environment where scale brings advantages, we see in Nuveen a partner who shares our values and respects our culture. The transaction significantly accelerates our growth plans and strengthens our global reach and balance sheet,» said Schroders CEO Richard Oldfield.

Both companies play an important role in Switzerland. Schroders employs around 300 people in Zurich and recently moved into new premises at Schützengraben. Nuveen represents the smaller presence in Switzerland, employing a sales team of around ten people.

At this stage, it is not yet possible to assess the impact of the takeover on the two companies’ operations in Switzerland. Nuveen is a subsidiary of Teachers Insurance and Annuities Association (TIAA).