Nuveen has made a deal to acquire a controlling interest in Arcmont Asset Management, a European private debt investment manager.
The acquisition of Arcmont will be Nuveen's first expansion into private capital markets in Europe.
The move will create one of the world's largest private debt managers, as Arcmont will be combined with Churchill Asset Management, Nuveen's North American private debt arm.
The new Nuveen Private Capital will control more than $60bn in combined committed capital, bringing Nuveen's alternative credit AUM to $178bn, and together serve about 600 institutional and family office investors.
Current CEOs of Arcmont and Churchill will be co-CEOs of the new firm, reporting to William Huffman, head of Nuveen equity and fixed income. Huffman will also serve as chair of Nuveen Private Capital.
Both private capital will continue to operate under their own names and brands, with no change to their investment teams or processes.
The acquisition is expected to close in the first half of next year, subject to regulatory approval.
Financial terms of the transaction were not disclosed, though the Financial Times reported Nuveen had paid over $`1bn.
Arcmont was founded in 2011 and has since raised more than $26bn of capital from more than 350 blue-chip investors, committing over $20bn to 270 transactions across Europe. The firm employs about 100 employees in six offices across Europe.
"Arcmont provides Nuveen with a transformational opportunity to significantly expand our position in one of the world's most dynamic investment markets and strengthen our focus on meeting the increasingly complex capital needs of clients globally," said J
He added: "Scale is a significant differentiator in private capital fundraising and deployment, so our complementary capabilities will greatly benefit from a more diversified set of limited partners, enhancing our ability to raise capital - and also accelerating our growth across the entire private debt market."
