is buying FAF Advisors
from US Bancorp
with $80 million in cash from its balance sheet and no debt financing, according to chief operating officer Glenn Richter
. In addition, US Bancorp will have a 9.5 percent stake in Nuveen. (See related coverage on The MFWire: "A Midwest Fund Firm is Sold"
and "Nuveen Cracks the Top 40 with its FAF Deal"
The value of the stake is not available, according to a Nuveen spokesperson.
In 2007, Nuveen was taken private in a $5.75 billion deal led by fellow Chicagoan Madison Dearborn Partners
, a private equity firm. The price was $65 per share.
During a conference call
this morning, Richter added that there are no earn-out provisions in place but that retention agreements have been implemented and that Nuveen anticipates little to no impact on management teams.
He said the deal creates compelling distribution benefits with DC investment only shops, broker-dealers and wirehouses for both the retail and institutional markets. According to Richter, FAF has shown consistent AUM growth since 2009 and its performance has been strong for the one, three and five-year periods.
FAF manages some $25.4 billion in long-term assets under management (US Bancorp is retaining the cash managemen business representing some $62 billion in assets), making the purchase price .315% of FAF's assets.
The deal is slated to close by the end of the year.
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