In a move bolstering its mutual fund offerings and distribution network, TIAA-CREF purchased Nuveen Investments from Madison Dearborn Partners on Monday for $6.25 billion, including outstanding debt.
Nuveen—which has approximately $221 billion in assets under management—will operate as a separate subsidiary within TIAA-CREF's Asset Management business. Nuveen CEO John Amboian will remain in place, as well as the current leadership, according to TIAA-CREF.
Roger W. Ferguson Jr., president and chief executive officer, TIAA-CREF said in statement the deal reinforces the company’s position as a leading diversified financial services organization with a broad mix of product offerings to serve clients.
The two companies said the deal was possible because both have complementary investment capabilities and distribution reach across a wide range of retail and institutional clients. The deal brings TIAA-CREF's total assets under management to approximately $800 billion.
"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," said Robert Leary, president of TIAA-CREF Asset Management.
Amboian said Monday Nuveen was delighted to join TIAA-CREF, noting it possesses an unparalleled pedigree in retirement services and investment management. "The clients of Nuveen, and each of our investment affiliates, will benefit from TIAA-CREF's support of our multi-boutique approach and from the continuity of our client services, our brands and our professionals, whose interests will remain strongly aligned with our long-term success."