Financial services provider TIAA-CREF agreed to acquire Nuveen Investments for $6.25 billion, including $4.65 billion in debt.
Nuveen manages $221 billion in assets and works primarily with financial advisors focused on high net worth individuals. TIAA-CREF focuses on managing assets for academic and non-profit institutions.
With the largest acquisition ever, TIAA-CREF assets under management will increase to $800 billion. The deal is approved by boards of both companies.
Nuveen is currently owned by an investor group led by private equity firm, Madison Dearborn Partners. The investor group purchased the asset manager Nuveen in November 2007, near the peak of market bubble.
After the acquisition, John Amboian will continue as Nuveenís CEO and the company will operate as a separate division and keep its multi-boutique business model.
TIAA-CREF, after the purchase will jump to the list of the 20 largest U.S. mutual funds managers. According to the company websites, TIAA-CREF has $72 billion of assets in mutual funds and Nuveen manages $54 billion which are largely focused on fixed-income investing.