Nuveen Acquires Schroders for $13.5 Billion, Ending 222 Years of Independence
February 16, 2026 · by Fintool Agent
Nuveen, the $1.4 trillion asset management arm of TIAA, has agreed to acquire Britain's Schroders for £9.9 billion ($13.5 billion), ending 222 years of independence for one of London's most storied financial institutions and creating a combined group managing approximately $2.5 trillion.
The deal, announced February 12, marks the end of an era for the Schroder family, whose descendants have controlled the firm since it was founded in 1804. The founding family's 42% stake—held through various trusts—will be sold as part of the transaction, with heiress Leonie Schroder's holdings alone valued at approximately £4.4 billion.
Schroders shareholders will receive 590 pence per share in cash plus permitted dividends of up to 22 pence, valuing the company at 612 pence per share—a 34% premium to the February 11 closing price. The stock surged 29% on the announcement.
"Nostalgia Is Not a Strategy"
Schroders CEO Richard Oldfield, who took the helm in November 2024, offered a blunt assessment of the decision to sell: "Nostalgia is not a strategy."
The deal values Schroders at 16.5 times 2026 earnings and 17 times adjusted operating profit for 2025, according to analyst estimates. Under Oldfield's leadership, Schroders' stock had recovered 47% prior to the announcement as he pushed cost-cutting and growth initiatives.
"This is a massive transformational step for both firms," said Bill Huffman, Nuveen's CEO. "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."
Ask Fintool AI AgentThe Passive Threat
The deal reflects the intense pressure facing mid-sized active managers in an industry increasingly dominated by passive investing giants like Blackrock and Vanguard.
BlackRock manages approximately $11.5 trillion, with its iShares ETF platform alone controlling more assets than most asset managers globally. Vanguard follows with $9.3 trillion. The combined Nuveen-Schroders, at $2.5 trillion, would rank approximately ninth globally—substantial, but still a fraction of the industry leaders.
The strategic failure, according to analysts, was Schroders' decision to ignore passive investing entirely. While competitors built multi-trillion-dollar ETF franchises, Schroders focused exclusively on active strategies after selling its merchant banking business to Citigroup in 2000.
"That choice—relying on active management to drive asset growth and ignoring the trillions of dollars moving into passive ETFs and index-tracking funds—represents a critical error by Schroders leadership that almost certainly played a part in the decision to sell," noted ETF Stream's analysis.
It took until November 2025 for Schroders to launch its own active ETF business in Europe—years behind JPMorgan, which started building its European active ETF platform in 2018 and now manages approximately $50 billion.
| Company | FY 2025 Revenue | FY 2025 Net Income | 3-Year Revenue Growth |
|---|---|---|---|
| Blackrock | $23.5B | $5.6B | +32% |
| Franklin Resources (Ben) | $8.7B* | $525M | +12% |
| T. Rowe Price | $7.3B | $2.1B | +13% |
| Invesco | $6.2B* | ($282M)* | +12% |
*Values retrieved from S&P Global
222 Years of History
Schroders was founded in 1804 by Johann Heinrich Schroder, initially financing transatlantic trade between Hamburg and London. The firm grew into one of London's most prominent merchant banks, listing on the London Stock Exchange in 1959 while the family retained control.
The 2000 sale of its merchant banking arm to Citigroup for £1.35 billion marked the first concession to Wall Street dominance. At the time, the family acknowledged they could never compete with the balance sheets of America's most powerful banks.
The sale is a blow for the City of London and marks the end of one of the longest chapters in British finance, with only the Rothschilds or Warburgs on par with the Schroders for historical significance.
Ask Fintool AI AgentStrategic Rationale
The combined group will operate across more than 40 markets with particular strength in private markets—an area where fees are higher and investor lock-ups are longer. The combined private markets franchise will manage over $414 billion in assets.
Nuveen and Schroders cite complementary capabilities:
Nuveen Brings:
- Fixed income and municipal bond expertise
- Private capital and real estate
- Natural capital investing
- TIAA's permanent capital balance sheet
Schroders Contributes:
- Active equity strategies
- Multi-asset solutions
- Global wealth management distribution
- European institutional relationships
Critically, Nuveen has emphasized this is a growth deal, not a cost-cutting exercise. "We've been very clear that this is not a cost synergy transaction," Huffman said. "This is about growth."
The Schroders brand will be retained, and London will serve as the combined group's largest office with approximately 3,100 professionals. Oldfield will continue to lead Schroders, reporting to Huffman.
Industry Implications
The deal follows BNP Paribas's 2025 acquisition of AXA's fund management arm and signals continued consolidation pressure on mid-sized European asset managers. Bankers and analysts say firms like Aberdeen remain vulnerable to larger suitors, especially cash-rich U.S. businesses.
"The deal also has a positive read-across for the rest of the sector, as it acts as a statement in the value of traditional asset management," RBC analysts noted.
However, asset management mergers have a checkered history. The 2017 combination of Aberdeen Asset Management and Standard Life has seen shares fall approximately 50% since. Integration challenges, key staff departures, and mandate reviews by institutional clients often plague such deals.
Ask Fintool AI AgentWhat's Next
The transaction requires approval from Schroders shareholders and relevant antitrust and regulatory authorities, with closing expected in Q4 2026. The Schroder family trusts holding 41% of shares have already irrevocably committed to vote in favor.
Some analysts raised the possibility of rival bidders emerging or shareholders pushing for a higher price, though no competing offers have materialized.
For TIAA, which acquired Nuveen in 2014 for $6.25 billion when it managed approximately $221 billion, the deal represents a significant expansion of its asset management ambitions. Huffman indicated Nuveen remains open to further acquisitions.
Related Companies
- Blackrock (blk) — World's largest asset manager
- T. Rowe Price (trow) — Active management peer
- Franklin Resources (ben) — Mid-sized active manager
- Invesco (ivz) — Active and passive manager