Schroders, the British asset manager, is planning to expand its wealth management division through acquisitions. This strategic move comes after the company agreed to a $13.5 billion sale to U.S. asset manager Nuveen earlier in 2026. The acquisition by Nuveen, which valued Schroders at 612 pence per share, created a combined entity with $2.5 trillion in assets under management. This deal was seen as a response to the increasing pressure on mid-sized active managers to achieve greater scale in the industry.
The refocus on wealth management indicates Schroders' intent to specifically target very wealthy clients. The sale to Nuveen, which was one of Europe's largest fund manager deals, signaled the end of independence for the 222-year-old firm. Analysts noted that the combined entity would significantly strengthen Schroders in areas like fixed income, taking its fixed income assets from approximately 11 percent of its Assets Under Management (AUM) to roughly 25 percent, and boosting its private markets franchise to $414 billion.
Separately, Lloyds Banking Group fully acquired Schroders Personal Wealth (SPW), a joint venture with Schroders Group. Lloyds acquired the remaining 49.9% share capital from Schroders in exchange for its 19.1% stake in Cazenove Capital, with no cash consideration involved. SPW, which will be rebranded as Lloyds Wealth, manages approximately $17 billion in assets under administration for about 60,000 clients. Despite this transaction, Schroders will continue to manage SPW's customer assets and the existing Scottish Widows mandate under a multi-year agreement.
