Timothy Hurd, managing director at Madison Dearborn, navigated this $5.75 billion deal--the largest leveraged buyout in asset management history. Analysts said the deal made sense for the buyers because Nuveen has $53 billion in closed-end funds which are not subject to redemptions. Nuveen saw the deal as a growth buyout that will help it expand. Merrill Lynch Global Private Equity, Wachovia Capital Partners, Citi, DB Investment Partners and Credit Suisse/DLJ Merchant Banking made up the rest of the buyout group.
The buyout is helping Nuveen--long known for its municipal bond funds--make a push into equities. The firm is tweaking its multi-manager business model and exploring ideas such as energy funds, retirement income funds and quantitative strategies. Alan Brown, executive v.p., said Nuveen plans to launch funds more frequently and add managers to funds more easily than before the buyout.