TIAA-CREF Completes Acquisition of Nuveen Investments

Creates one of the world’s largest and most diversified financial services organizations
Strengthens ability to enhance customer returns and make lifetime income payments to millions of Americansi
New York, October 1, 2014 — TIAA-CREF, a leading financial services provider, announced today that it has successfully completed its acquisition of Nuveen Investments, a diversified investment management company.
“The closing of this transaction marks an exciting moment in TIAA-CREF’s 96-year history as a financial services firm committed to making a difference for those who make a difference in the world,” said Roger W. Ferguson Jr., president and chief executive officer of TIAA-CREF. “The addition of Nuveen Investments to the TIAA-CREF family further strengthens our position as a leading provider of financial services by enhancing our ability to deliver strong financial performance and serve our clients for the next 100 years.”i
“Our investment in Nuveen further strengthens and diversifies TIAA’s General Account, which serves as a foundation for the savings and lifetime income payments for millions of our participants,” said Robert G. Leary, executive vice president, TIAA-CREF and president of the company’s Asset Management business, which includes both TIAA-CREF Asset Management and Nuveen Investments. “The complementary investment offerings and strong distribution network that Nuveen Investments brings to TIAA-CREF will allow us to offer our clients a broader range of expertise and investment options than ever before.”
The closing, in aggregate, creates one of the world’s largest and most diversified financial services organizations that:
  • Manages approximately $844ii  billion in client assets, including approximately $111 billion in alternative investments;
  •  Serves more than 5 million individuals and more than 16,000 institutions; and,
  •  Features a product line-up that spans the asset class spectrum and includes retail mutual funds, closed-end funds and commodity exchange traded funds totaling $194 billion of assets.iii
Nuveen Investments will operate as a separate subsidiary within TIAA-CREF, retaining its brand and multi-boutique operating model. Nuveen Investments’ leadership and investment teams will remain intact, with John Amboian maintaining his role as chief executive officer. Carol Deckbar will continue to lead TIAA-CREF’s core asset management business as chief executive officer. Amboian and Deckbar will report to Rob Leary.
“We are excited to officially become part of the storied TIAA-CREF family and to add our leadership and diversified investment strategies and solutions to the firm’s multi-boutique platform,” said Amboian. “Together, we have formed a strong relationship that positions us well for the future.”
As of June 30, 2014, Nuveen Investments’ assets under management rose to $231 billion, an all-time high for the company. In the June quarter, Nuveen Investments’ mutual funds garnered $1.7 billion of net new inflows, driven by flows into a broad range of municipal and taxable fixed income strategies, representing a mutual fund organic growth rate of 12.3 percent from the prior quarter. Nuveen Investments is the market leader in closed-end funds and remains a leader in the retail managed account arena. The firm has significantly expanded its offering of high-caliber mutual funds over the past six years, more than doubling the number of non-municipal bond funds that it offers.
TIAA-CREF acquired Nuveen Investments from an investor group led by Madison Dearborn Partners for an enterprise value of $6.25 billion, inclusive of Nuveen Investments’ outstanding debt. In connection with the transaction, Nuveen Investments’ outstanding term loans, totaling approximately $3.1 billion, were repaid in full. The transaction was financed using a combination of debt and equity. On September 18, 2014, TIAA issued an aggregate of $2 billion in surplus notes, the proceeds of which were used to fund a portion of the acquisition price and for general corporate purposes.
The completion of the Nuveen Investments acquisition follows the successful close of the TIAA Henderson Real Estate joint venture in April 2014, as well as several other TIAA-CREF acquisitions in recent years including Westchester Group Investment Management (2010) and GreenWood Resources (2012).
TIAA-CREF and Nuveen Investments offer a wide range of investment capabilities including equity, taxable and tax-exempt fixed income, asset allocation, commodities, real estate and real asset strategies. In addition to providing clients with a broader array of traditional and alternative investment offerings, the acquisition of Nuveen Investments gives TIAA-CREF two high-quality, award-winning mutual fund complexes. TIAA-CREF was named Lipper’s “Best Overall Large Fund Company” for the second year in a row in March, while Nuveen Investments received that distinction in 2012, based on risk-adjusted returns against 33, 36, and 48 companies in 2011, 2012 and 2013.iv

About TIAA-CREF

TIAA-CREF (www.tiaa.org) is a national financial services organization with $844ii billion in assets under management (as of June 30, 2014) and is the leading provider of retirement services in the academic, research, medical and cultural fields.

About Nuveen Investments

Nuveen Investments provides high-quality investment services designed to help secure the long-term goals of institutional and individual investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets a wide range of specialized investment solutions which provide investors access to capabilities of its high-quality boutique investment affiliates — Nuveen Asset Management, LLC, Symphony Asset Management LLC, NWQ Investment Management Company, LLC, Santa Barbara Asset Management, LLC, Tradewinds Global Investors, LLC, Winslow Capital Management, LLC and Gresham Investment Management LLC, all of which are registered investment advisers and subsidiaries of Nuveen Investments, Inc.  In total, Nuveen Investments managed approximately $231 billion as of June 30, 2014. For more information, please visit the Nuveen Investments website at www.nuveen.com .
TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, Members FINRA and SIPC, distribute securities products.
You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877-518-9161 or log on to www.tiaa.org for product and fund prospectuses that contain this and other information. Please read the prospectuses carefully before investing.
TIAA-CREF products may be subject to market and other risk factors. See the applicable product literature, or visit www.tiaa.org, for details.

i Performance is subject to market fluctuations, and lifetime income payments are guarantees based on TIAA's claims paying ability.

ii Based on assets under management across Nuveen Investments affiliates and TIAA-CREF investment management teams as of June 30, 2014, respectively.

iii Includes assets under management across Nuveen Investments affiliates and TIAA-CREF investment management teams as of June 30, 2014, respectively. Excludes money market strategies, separate accounts, variable annuity products (including CREF variable annuities), non-registered funds and foreign domiciled funds. CREF Accounts AUM is approximately $233 billion as of June 30, 2014.

iv The Lipper Award is given to the group with the lowest average decile ranking of three years' Consistent Return for eligible funds over the three-year period ended 11/30/11, 11/30/12 and 11/30/13, respectively. Nuveen was ranked against 33 fund companies in 2011, and TIAA-CREF was ranked against 36 fund companies in 2012 and 48 fund companies in 2013, with at least five equity, five bond, or three mixed-asset portfolios. Past performance does not guarantee future results.  For current TIAA-CREF product performance and rankings, please visit the Research and Performance section on www.tiaa.org.

 
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