(April 14, 2014) — TIAA-CREF has paid $6.25 billion for Nuveen Investments and its $220 billion in assets under management (AUM), propelling it up the charts of the world’s largest money managers.
According to a release from the company, the combination of the two pools of assets will bring TIAA-CREF’s total to approximately $800 billion in AUM.
League tables compiled by investment consultant Towers Watson late last year showed the purchase will vault the firm into the top 20 money managers worldwide.
While the firm still sits behind the likes of BlackRock and Vanguard—firms with north of $2 trillion in AUM—TIAA-CREF will join the ranks of Wellington, Northern Trust, and Goldman Sachs as firms approaching the $1 trillion mark.
Nuveen, previously owned by a group led by private-equity giant Madison Dearborn Partners, will operate as an independent subsidiary within TIAA-CREF’s asset management unit, according to the release.
“For nearly 100 years, we have been wise financial stewards for those who make a difference in the world in the academic and non-profit communities,” Roger Ferguson Jr., president and chief executive officer at TIAA-CREF, said in the release.
“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.”
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