Schroders Explores Private Capital Tie-Ups to Accelerate Growth

According to a Reuters report, Schroders plc, the 222-year-old British asset manager listed on the London Stock Exchange, has engaged in high-level discussions with potential partners about strategic tie-ups to accelerate growth in its private capital franchise, Schroders Capital — a unit valued at roughly £800 million in analysts’ estimates.

These discussions, which have taken place over recent months, reportedly included French investment firm Wendel and London-listed Bridgepoint Group as potential partners, though sources say that negotiations have since stalled with no transaction yet agreed.

Strategic Context: Why This Matters

Asset managers globally are under pressure from compressed fees in traditional public markets — particularly equities and fixed income — prompting a strategic pivot toward private markets, where fee pools remain more attractive and investor demand for differentiated returns persists. Schroders has been no exception.

CEO Richard Oldfield has made private markets a central pillar of Schroders’ growth strategy, with Schroders Capital tasked with achieving £20 billion of net new business by the end of 2027. That target follows an initial year in which the unit attracted roughly £4.5 billion in inflows.

Within private markets, Schroders Capital spans a broad range of strategies including private equity, secondaries, private debt and credit alternatives, infrastructure, real estate, and venture strategies — reflecting both institutional and select wealth channels.

The Talks: Who and What

The conversations with Wendel and Bridgepoint — both well-established players in private markets — illustrate Schroders’ interest in strategic combinations or partnerships that could help it:

1. Expand distribution channels into new investor segments;
2. Scale investment capabilities in specialist asset classes such as private credit and infrastructure;
3. Leverage partner networks for origination and deal flow; and
4. Grow assets under management more efficiently through shared resources and branding.

Schroders also explored potential partnerships with insurers, suggesting a broad hunt for strategic complements rather than a narrow focus on any single counterparty.

Why Talks Stalled

Details on why the negotiations did not progress to a deal remain limited, with sources saying only that the discussions “have since stalled”. Neither Schroders nor Bridgepoint provided substantive commentary on the talks, while Wendel declined to comment on market speculation.

Still, industry sources suggest such stall points can stem from valuation gaps, differing strategic priorities, or evolving market conditions — particularly in private credit and credit alternatives where pricing and risk dynamics have shifted over the past 12–18 months.

Industry Backdrop and Competitive Dynamics

The private markets landscape has been dynamic, with several high-profile transactions and tie-ups underlining the broader trend:

1. EQT’s acquisition of Coller Capital — a deal valued at roughly $3.2 billion — underscores active strategic consolidation within the private markets ecosystem.
2. Large asset managers like BlackRock and others continue to bolt on private credit and infrastructure platforms, deepening competition.

These moves reflect a broader industry battle for scale and differentiated product offerings, particularly in areas where long-term capital commitments and fee-rich investment strategies are viable.

For Schroders, this competitive backdrop offers both opportunity and urgency. On one hand, demand from institutional investors — pension funds, sovereign wealth funds, and insurers — is driving allocations to bespoke private strategies. On the other, competing firms with larger scale or niche expertise may outpace Schroders if it fails to find the right partners or build capability organically.

Building Scale Through Schroders Capital

Schroders has already made meaningful progress in private markets through product innovation and partnerships:

1. The firm continues to advance Long-Term Asset Funds (LTAFs) in the UK market, structures that enable institutional and wealth channels to access illiquid private assets in a regulated way.
2. It has also launched specialist platforms such as a self-storage investment platform, backed by institutional capital, reflecting strategic diversification within real assets.
3. Recent hires and expansions in teams focused on private debt and credit alternatives signal an internal push to strengthen core capabilities.

Despite the stalled talks, the work already underway across product development, client distribution, and investment capability could underpin organic growth if inorganic routes prove challenging.

Outlook: What to Watch

Although no deal has yet emerged, today’s report signals several important themes for the UK and broader European private capital markets:

1. Deal appetite remains strong, even if negotiations take time or stall;
2. Schroders’ target of £20 billion in net new private capital business underscores the scale ambitions of traditional asset managers; and
3. Partnerships — whether with PE firms, insurers, or other capital allocators — will continue to be a critical lever for growth as competition intensifies.

Investors and market watchers should monitor future developments from Schroders, including potential re-engagement with partners, future tie-ups, or further product innovations that could reshape its private markets footprint.

In an environment where scale, distribution, and specialization drive competitive advantage, Schroders’ efforts to explore strategic collaborations — even if not yet successful — illustrate the evolving nature of asset management and private capital integration in the UK and beyond.