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The chief executive of Schroders called the Treasury ahead of announcing its £9.9bn sale to US fund group Nuveen to reassure Downing Street of the asset manager’s commitment to the UK’s capital markets.
Schroders on Thursday said that its board had backed a 612p-a-share offer from the Chicago-based investment firm in a deal supported by the group’s founding family, which has a 42 per cent stake in the business.
The deal, if approved by remaining shareholders, will lead to Schroders’ exit from the London Stock Exchange, dealing another blow to the domestic market that has suffered a series of departures in recent years with companies being taken over or opting for a US listing.
The announcement came eight days after Beazley, the FTSE 100 insurer, agreed an £8bn takeover by Zurich Insurance.
Schroders’ chief Richard Oldfield told the FT that he “connected with Number 11” about the takeover.
“I would say to anybody, whether they’re in the government or outside, that this deal actually is about emphasising the role of London, as you bring more capacity to London,” he said. “It’s a good deal for the UK.
“The key thing that I want to really underscore is we’re still committed to London . . . I’m not going anywhere, I’m still committed to doing the job here.”
The newly merged group has committed to “London being the non-US headquarters, keeping the Schroders brand, keeping the capabilities that we’ve got here”, he added.
Oldfield has forged close ties with the UK government and was one of the delegates to accompany Prime Minister Sir Keir Starmer last month on a trip to China.
He also visited Beijing with chancellor Rachel Reeves last year as part of a commitment to explore deeper economic ties with China.
Oldfield supported Reeves’ financial services growth and competitiveness strategy in a statement in a Treasury press release in November 2024, saying the UK had “great, innovative companies” and “the expertise and a world-class capital market” to help generate growth.
Schroders’s former chief executive Peter Harrison is part of the Capital Markets Industry Taskforce, having been a driving force in the group created before he left the asset manager as City executives focused on reviving London listings and attracting companies to float in the UK.
Oldfield said on Thursday that “if the only way we measure the competitiveness of London is through the London Stock Exchange, then we’re being very myopic”.
“It’s a whole range of things: it’s about Schroders showing up and supporting other [initial public offerings], it’s about the money that we manage, it’s how we participate in policy creation, it’s how we support . . . active management.”
He said the deal meant “if we grow quicker, we can support the London capital markets in the UK even more. That’s ultimately what is right for London: thriving companies”.
The Treasury declined to comment.