Nuveen has completed its acquisition of Schroders, bringing together the two investment firms to create a global active public-to-private asset and wealth manager with approximately $2.6 trillion in assets under management.
The combined organization has operations in more than 40 markets and a significant presence across the U.S., UK, Europe and Asia-Pacific. According to the companies, the combination creates the only investment manager with a top-10 global position across active equities, active fixed income and private markets.
The transaction significantly broadens Nuveen’s investment capabilities across institutional and wealth channels. The combined platform spans public and private markets, giving the firm additional scale to develop investment solutions for retirement, insurance and wealth management clients.
Nuveen plans to continue investing in its capabilities, personnel and client offerings with the support of parent company TIAA, which will remain the long-term shareholder behind the combined organization.
For the next 12 to 18 months, Schroders will continue operating separately within Nuveen while integration planning progresses. Richard Oldfield, Group Chief Executive of Schroders, will continue leading Schroders and report to Nuveen CEO William Huffman during that period.
Over time, Nuveen intends to create a unified investment platform spanning the full breadth of the combined organization’s public and private market capabilities.
Saira Malik will serve as Chief Investment Officer of the combined investment platform, reporting to Huffman. Johanna Kyrklund will become Chief Investment Officer of Public Markets & Solutions, with responsibility for equities, fixed income, multi-asset and solutions, eventually reporting to Malik.
The firm also plans to organize its approximately $400 billion private markets platform by asset class, reflecting its strategy of expanding the range of private-market capabilities available to clients.
The combined public-to-private platform is expected to support new approaches to retirement income management, improve capital efficiency for insurance portfolios and expand personalization capabilities in wealth management.
Nuveen and Schroders intend to retain their existing investment teams across asset and wealth management during the initial 12-to-18-month integration period. The companies also plan to build on Schroders’ existing wealth management businesses, including Cazenove Capital.
Matt Oomen will lead global client coverage, reporting to Huffman and overseeing efforts to give clients access to the combined organization’s broader investment capabilities.
London will become the combined firm’s non-U.S. headquarters and largest office, with several key leadership positions based in the UK.
The combination brings together two investment organizations with long histories in global asset management while giving Nuveen additional scale across public markets, private assets and wealth management.
KEY QUOTES:
“Our landmark combination gives us a once-in-a-lifetime opportunity to reshape our industry and to deliver a proposition to clients that hasn’t previously existed. Together, we’ll create a platform with leading investment performance across every major capital market with the flexibility to tailor solutions to meet clients’ specific goals. We’ll deliver investment excellence and worldwide breadth, backed by the credibility of decades of on-the-ground presence around the world.”
William Huffman, CEO of Nuveen
“Nuveen is essential to our delivery of lifetime income and financial security to millions of people. Completing this acquisition creates one of the largest active global asset managers in the world with the reach, talent and capabilities to compete and win in every major market. This combination accelerates our strategy and strengthens the investment capabilities that power our retirement and annuity products, deepening our ability to deliver on our lifetime income mission for generations to come.”
Thasunda Brown Duckett, CEO of TIAA
“Today’s milestone is an extraordinary moment for our clients and our business. At a time when the world is changing rapidly, we believe active management is more relevant than ever, helping clients navigate uncertainty and achieve the outcomes they need. By bringing together our complementary strengths in active investment, we will offer more to our clients and have more opportunities for growth, underpinned by a shared investment-led culture, long-term perspective and deep heritage.”
Richard Oldfield, Group Chief Executive of Schroders
