Updated: April 14, 2014 7:46AM
TIAA-CREF is buying Chicago-based Nuveen Investments in a deal valued at $6.25 billion, the companies announced Monday.
Nuveen will operate as a separate subsidiary within TIAA-CREF’s Asset Management business, according to a statement from TIAA-CREF. John Amboian will remain the chief executive officer of Nuveen, and Nuveen’s current leadership and key investment team will stay in place, the company.
TIAA-CREF is buying Nuveen from an investor group led by private equity firm Madison Dearborn Partners, which acquired the company for $5.25 billion in 2007.
“We are delighted to partner with TIAA-CREF, which stands among the most highly respected financial institutions and possesses an unparalleled pedigree in retirement services and investment management,” Amboian said in a prepared statement. “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.”
The boards of directors at TIAA-CREF and Nuveen have unanimously approved the transaction. The companies expect to complete the deal by the end of 2014.