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Rating:UPDATE 3 | Nuveen Sells Not Rated 2.9 Email Routing List Email & Route  Print Print
Wednesday, June 20, 2007

UPDATE 3 | Nuveen Sells

Reported by Sean Hanna, Editor in Chief

Nuveen Investments Inc. has been taken private in a $5.75 billion deal led by Madison Dearborn Partners LLC, a private equity firm. The price was $65 per share, 20 percent more than the $54.16 Nuveen shares closed at on Tuesday.

The buyer will also assume $550 million of Nuveen's debt. MDP, like Nuveen, is based out of Chicago. (For more on MDP, see "Who is Madison Dearborn Partners?").

Nuveen has $166 billion of assets under management, of which $19 billion are mutual fund assets. According to the firm's latest 10-K filed March 1 with the SEC, Nuveen had 828 full-time employees at the end of 2006.

Timothy R. Schwertfeger
Nuveen Investments
Chairman and CEO
Effective July 1, Nuveen's CEO, Timothy R. Schwertfeger, 58, will relinquish his post, which he has held for more than a decade. He will become the non-executive chairman of the firm and will remain the chairman of the Nuveen fund board.

John P. Amboian, 46, Nuveen's current president, will take over as CEO. Amboian was named executive vice president of Nuveen in 1995 and then promoted to president in 1999. He has served as director since 1999.

In a news release, Schwertfeger said the deal reflects "an important step in our firm's development and a compelling value for our stockholders" and will provide the 109-year-old asset management firm with the opportunity to "accelerate the development of new investment capabilities, products and channels and help us attract and retain top industry talent."

Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606

  • Founded: 1898

  • IPO: 1992

  • '40 Act AUM: $19 billion

  • Total AUM: $166 billion

  • Employees: 828
  • Amboian said the move will allow Nuveen to "embark on the next phase of our development with a team in place that is ready and fully prepared for the exciting opportunities that are ahead of us."

    The merger is expected to close by the end of the year.

    "In its 109-year history, Nuveen Investments has created one of the best known, most highly trusted brands in the investment management industry," said Timothy M. Hurd, managing director for Madison Dearborn Partners.

    "We will fully support Nuveen Investments' growth strategies and our objective is to provide additional resources and to strengthen the company's long-term strategic development," Hurd added.

    Other investors involved in the deal are affiliates of Merrill Lynch, Wachovia, Citigroup, Deutsche Bank and Morgan Stanley.

    Goldman Sachs advised Nuveen on the deal. MDP, for its part, was advised by Merrill Lynch.

    Under the merger agreeement, Nuveen may solicit proposals from third parties through July 17, and Nuveen's board of directors, with the assistance of Goldman Sachs, intend to do just that, according to the release.

    Nuveen officials said they will not disclose developments regarding the solicitation process unless they have made a decision regarding any alternative proposals.

    Details to come  

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