The acquisition will further strengthen TIAA-CREF as a leading provider of retirement and financial services and expand the products and serves available to its customers, the company said.
"For nearly a hundred years, we have been wise financial stewards for those who make a difference in the world in the academic and non-profit communities," Roger W. Ferguson Jr., president and chief executive officer, TIAA-CREF, said.
"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."
"We are pleased to bring our clients around the globe access to new investments and strategies through our partnership with an experienced, market-tested investment firm like Nuveen," Robert Leary, executive vice president, TIAA-CREF, and president, TIAA-CREF Asset Management, said.
"In addition, Nuveen's strong distribution network will give us growth and scaled presence in several important channels through relationships built around experienced investment managers with strong track records."
TIAA-CREF is acquiring Nuveen from an investor group led by Madison Dearborn Partners, a private equity investment firm, for an enterprise value of $6.25 billion, inclusive of Nuveen's outstanding debt.
Nuveen will operate as a separate subsidiary within TIAA-CREF's Asset Management business, while John Amboian will remain the chief executive officer and Nuveen's current leadership and key investment team will stay in place.
"We are delighted to partner with TIAA-CREF, which stands among the most highly respected financial institutions and possesses an unparalleled pedigree in retirement services and investment management," said Amboian.
"The clients of Nuveen, and each of our investment affiliates, will benefit from TIAA-CREF's support of our multi-boutique approach and from the continuity of our client services, our brands and our professionals, whose interests will remain strongly aligned with our long-term success.
The addition of Nuveen brings TIAA-CREF's total assets under management to approximately $800 billion.