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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 outstanding debt.
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
John Amboian will remain the chief executive officer of Nuveen
and the company's leadership and key investment team will stay
"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 Asset Management.
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.