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Feb 12, 2026
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LONG
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Harrison states the deal is driven by the need for "scale" and specifically to access Nuveen's "strength and depth of... Private Markets capabilities and Fixed Income distribution." Traditional "Active Management" (stock picking) is commoditized and capital-intensive due to tech costs. The "Alpha" and growth are entirely in Private Credit and Private Equity. If a giant like Schroders ($700B+ AUM) feels too small to compete without Private Markets exposure, the pure-play Alternative Asset Managers (Blackstone, KKR, Ares, Blue Owl) are the undisputed winners of this secular rotation. They are the predators; traditional managers are the prey. LONG the Alternative Asset Managers and Consolidators. Regulatory scrutiny on private credit valuations; slowing fundraising in private equity. |
Bloomberg Markets
Nuveen to Buy UK's Schroders for $13.5 Billio...
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Feb 12, 2026
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LONG
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"It is not just about AI... it is about tokenization and distributed technology. About reshaping our industry and distribution models." When the CEO of a centuries-old traditional finance firm cites "tokenization" as a primary driver for a $13.5B merger, it confirms that RWA (Real World Assets) is moving from "crypto narrative" to "institutional capex cycle." Asset managers are re-platforming to handle tokenized funds. LONG the infrastructure enabling institutional tokenization. Slow regulatory adoption; technology integration failures. |
Bloomberg Markets
Nuveen to Buy UK's Schroders for $13.5 Billio...
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Feb 12, 2026
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WATCH
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"AI has changed the landscape and the requirement to invest in that technology... is better done with a larger business." The deal commanded a "34% premium" and "17x 2025 earnings." This deal sets a valuation floor and a strategic imperative for other mid-to-large traditional asset managers (e.g., European/UK peers). They face the same AI/Tech capex headwinds and lack of scale. The market will likely re-rate these stocks as potential M&A targets. WATCH/LONG for M&A arbitrage in the sector. Deal flow dries up; regulators block further consolidation. |
Bloomberg Markets
Nuveen to Buy UK's Schroders for $13.5 Billio...
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