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TIAA-CREF to acquire Nuveen Investments
15 April 2014
New organisation to have aggregated AuM of $790bn
TIAA-CREF has reached an agreement to acquire Nuveen
Investments from an investor group led by private equity
investment firm Madison Dearborn Partner for an enterprise
value of $6.25bn, inclusive of Nuveen’s
Nuveen will operate as a separate subsidiary within
TIAA-CREF’s asset management business, retaining
its current multi-boutique business model and continuing to
support its investment affiliates through scaled distribution,
marketing and administrative services.
John Amboian will remain the chief executive officer of Nuveen
and the company’s leadership and key investment
team will stay in place.
"The acquisition of Nuveen can generate greater returns that
will benefit our customers," said Roger Ferguson Jr, president
and chief executive officer TIAA-CREF.
"Nuveen’s strong distribution network will give us
growth and scaled presence in several important channels
through relationships built around experienced investment
managers with strong track records," added Robert Leary,
executive vice president TIAA-CREF and president TIAA-CREF
The transaction gives TIAA-CREF two mutual fund complexes with
$181bn of aggregate AuM. This year, for the second year in a
row, TIAA-CREF was named by Lipper as the Best Overall Large
Ninety eight per cent of TIAA-CREF’s mutual funds
receive an overall Morningstar rating of three or more stars
across all asset classes as of 31 March 2014 and 90% of
Nuveen’s funds have an overall Morningstar rating
of three or more stars across all asset classes.
The acquisition is expected to be complete by year-end 2014,
subject to customary closing conditions.