Nuveen to Buy U.K. Asset Manager Schroders for $13.5 Billion

Core Viewpoint - Nuveen has agreed to acquire U.K. asset manager Schroders for $13.5 billion, enhancing its European presence with a historic London investment firm [1][2] Group 1: Deal Overview - The acquisition is part of a trend among active money managers to compete with passive investment giants like BlackRock and Vanguard [2] - The deal will end the independence of one of London's last major financial dynasties, following a wave of acquisitions by American and European banks in the late 20th century [2] - The combined entity will manage nearly $2.5 trillion in assets, positioning it as the 10th largest globally by the end of 2024 [3] Group 2: Strategic Implications - The acquisition allows Nuveen to access Schroders' client base in Europe, the Middle East, Africa, and Asia, while Schroders can market its funds to Nuveen's American clients [5] - Nuveen plans to maintain the Schroders brand in London, indicating a strategy to leverage brand equity [5] - The combined assets will have approximately 17% in private markets, with a goal to increase this share, as private investments typically yield higher fees [6] Group 3: Financial Details - Schroders' shareholders will receive up to £6.12 (approximately $8.34) per share, reflecting a 34% premium over the closing price prior to the announcement [7] - The stock price of Schroders increased by about 29% in early trading following the announcement of the deal [7] - The acquisition has received support from the Schroder family, indicating alignment among key stakeholders [8]