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TIAA-CREF to acquire Nuveen Investments in a deal valued USD6.25 billion

April 14
2:29 PM 2014

TIAA-CREF has confirmed its acquisition of Madison Dearborn Partners LLC’s Nuveen Investments. The deal was valued USD6.25 billion, reported Bloomberg. The purchase deal led the teacher’s pension fund into landing a place in the US top-20 mutual fund companies.

The price of the deal included the pension fund’s current debt amounting USD4.56 billion. This was according to a statement issued today from the New York based pension fund. Madison Dearborn acquired Nuveen around seven years ago in a deal valued USD5.75 billion. The deal was then the biggest buyout from an asset firm in the US.
Mutual fund consultant Geoff Bobroff said, “This makes TIAA-CREF a real contender in the marketplace. They will have an interesting mix of businesses.”

The acquisition of TIAA-CREF would enable the company to increase its appeal to a larger set of prospect investors. It would also expand the asset of the mutual fund, said a report from Bloomberg. The report went on saying that the mutual fund would have around USD800 billion under its management after adding USD221 billion in assets.

TIAA-CREF’s asset-management unit head Robert Leary said during an interview today, “We think this is very complimentary,”, said today in an interview. “It also adds a very large distribution capability. They’re a powerhouse in the retail distribution world.”

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