Schroders Explores Private Capital Tie Ups to Drive Growth

UK asset manager Schroders has held high level discussions about potential partnerships to accelerate the expansion of its private capital business, according to people familiar with the matter. The talks, which took place several months ago, were aimed at helping the London based group gain scale in private markets as competition intensifies across the global asset management industry. Sources said discussions included possible tie ups involving Schroders Capital, the firm’s private markets arm, as management explores ways to boost growth beyond traditional equities and bonds. While the talks did not progress and have since stalled, they highlight the strategic focus being placed on private assets, where managers can typically charge higher fees and secure longer term client commitments. Schroders declined to comment on specific discussions but said it regularly engages with industry peers on potential partnerships.

According to sources, Schroders explored options involving France’s investment firm Wendel as well as London listed private equity group Bridgepoint Group. The discussions were described as exploratory and part of a broader review of strategic opportunities rather than formal deal negotiations. Asset managers worldwide have been moving aggressively into private credit, infrastructure, and other unlisted investments as pressure on margins in public markets continues to grow. Analysts estimate that Schroders Capital represents a significant portion of the group’s overall value, underlining why management is keen to expand the unit’s footprint and capabilities over the coming years.

Private market growth has been identified as a central pillar of Schroders’ long term strategy under its current leadership. The firm has set ambitious targets for net new business inflows into its private capital division, aiming to significantly increase assets under management by the end of the decade. Earlier this year, Schroders reported solid early progress toward those goals, reinforcing confidence in the strategy. In addition to discussions with investment firms, sources said Schroders has also examined possible partnerships with insurers as it looks to widen distribution channels and access long term capital. The asset management sector has recently seen a wave of consolidation and partnerships, reflecting the scale required to compete effectively in private markets.

The talks come amid broader restructuring and growth efforts at Schroders, which has been working to improve profitability and attract new client assets. Management has previously signalled openness to partnerships that could fill capability gaps, particularly in areas such as private credit. While no transaction has emerged from the recent discussions, the interest underlines ongoing momentum across the sector as firms reposition for a future where private assets play a larger role in portfolios. Investors have responded positively to recent trading updates, suggesting confidence is building around the group’s strategic direction even as competition for private market opportunities intensifies.