Financial services provider TIAA-CREF has agreed to acquire Nuveen Investments from an investor group led by Madison Dearborn Partners at an enterprise value of $6.25 billion. Madison Dearborn acquired Nuveen in 2007.
Nuveen Investments is provider of financial asset management services to institutions and high net worth individuals. The company has approximately $220 billion of assets under management and is based in Chicago (www.nuveen.com).
“We are proud of the accomplishments Nuveen has made in recent years and its status as a provider of top performing investment funds,” said Sam Mencoff, co-chief executive officer, Madison Dearborn Partners. “TIAA-CREF is the right home for Nuveen and its investment affiliates moving forward. We thank John Amboian and his team for their partnership and we wish them well as Nuveen enters this exciting new chapter.”
Nuveen will operate as a separate subsidiary within TIAA-CREF’s Asset Management business, retaining its current 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 Nuveen’s current leadership and key investment team will stay in place.
TIAA–CREF (Teachers Insurance and Annuity Association – College Retirement Equities Fund) is a Fortune 100 financial services organization with approximately $569 billion in assets under management and is a leading provider of retirement services in the academic, research, medical and cultural fields. The company was founded in 1918 by Andrew Carnegie and is headquartered in New York (www.tiaa-cref.org).
“For nearly a hundred years, we have been wise financial stewards for those who make a difference in the world in the academic and non-profit communities,” said Roger Ferguson Jr., president and chief executive officer, TIAA-CREF. “The acquisition of Nuveen can generate greater returns that will benefit our customers. This transaction reinforces our position as a leading diversified financial services organization with a broad mix of product offerings to serve clients today and those in retirement for decades to come.”
Madison Dearborn Partners has more than $18 billion of capital under management. Sectors of interest include basic industries; business and government services; consumer; financial and transaction services; health care; and telecom, media and technology services. Madison Dearborn was founded in 1992 and is based in Chicago (www.mdcp.com).
Lazard acted as lead financial advisor to TIAA-CREF and J.P. Morgan Securities LLC also acted as financial advisor to TIAA-CREF.
BofA Merrill Lynch, Wells Fargo Securities, and Citigroup Global Markets acted as financial advisors to Nuveen Investments. UBS Investment Bank, Goldman Sachs & Co. and Moelis & Company acted as financial advisors to the Nuveen management team.
Morgan Stanley, Deutsche Bank and RBC Capital Markets acted as financial advisors to Madison Dearborn Partners.
© 2014 PEPD • Private Equity’s Leading News Magazine • 4-15-14
