TIAA-CREF has agreed to purchase Nuveen Investments for US$6.25 billion ($6.85 billion) from private equity firm Madison Dearborn Partners.
Nuveen has US$221 billion in assets under management, and the acquisition will boost TIAA-CREF’s total assets under management to approximately US$800 billion.
“The acquisition of Nuveen can generate greater returns that will benefit our customers,” says Roger W. Ferguson Jr., TIAA_CREF’s president and CEO. 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.”
Nuveen, which offers services to both institutional and individual clients, will operate as a separate subsidiary within TIAA-CREF’s asset management business, retaining its current multi-boutique business model.
The acquisition is expected to be complete by year-end 2014, subject to customary closing conditions.
TIAA-CREF provides retirement services mainly in the academic, research, medical and cultural fields.
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