Nuveen's landmark acquisition of Schroders for nearly $14 billion signals a major consolidation wave in the asset management industry. This theme identifies other companies, including potential acquirers and M&A advisors, that stand to benefit from this trend.
Published on February 14
The Nuveen-Schroders deal has set the stage for more major consolidations. When industry giants start merging, it often triggers a domino effect that creates opportunities for both acquirers and dealmakers.
Investment banks earn substantial advisory fees on billion-pound deals. With asset managers needing scale to compete, expect more high-value transactions that boost banking revenues significantly.
In today's competitive landscape, size matters more than ever for asset managers. Companies that can't achieve scale through organic growth will need to buy it, creating a wave of strategic opportunities.
The Nuveen-Schroders deal represents the beginning of a major consolidation wave in asset management. As competition intensifies and scale becomes crucial, we expect more large mergers and acquisitions. This creates opportunities for both potential acquirers seeking growth and the investment banks that facilitate these complex transactions.
This group includes two types of beneficiaries: major asset managers positioned to make acquisitions and investment banks that earn substantial fees from M&A advisory work. These companies are well-positioned to capitalise on increased deal-making activity as the industry consolidates to achieve greater scale and competitiveness.
Each company was handpicked by professional analysts based on their strategic position in the consolidation trend. The selection includes the world's largest asset managers who can afford major acquisitions, alternative investment leaders, and premier investment banks with strong M&A practices that will benefit from increased transaction volumes.
The basket's total market capitalisation is 1,854,057.482. A small number of very large-cap stocks dominate, tending to anchor the basket's overall profile.
BLK: $166.25B
BX: $155.09B
KKR: $90.68B
Get the full story on this Basket. Read our detailed article on its risks and potential.
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Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.
If you invested across these assets:
In 12 months it might be worth:
+9.28%
On average, analysts expect assets in this group to grow 9.28% over the next year.
8 of 15 assets in this group are rated Buy by professional analysts.
