The John Nuveen Co. today announced it will acquire Symphony Asset Management for an initial cash payment of $210 million, followed by additional cash payments over five years if Symphony exceeds growth and profitability targets. BARRA Inc. owns 50% of Symphony and will net $128 million of the initial cash proceeds and up to an additional $12 million over the five-year period. Principals at Symphony own the other 50% of the company.
Symphony manages $4 billion in market-neutral strategies for institutional investors. Nuveen manages $71 billion, mainly for retail investors. Jeffrey Skelton, Symphony president and CEO, said in a statement that Symphony will continue to focus on institutional clients and will add investment products. He added that key employees at Symphony have long-term retention agreements as part of the terms of the acquisition. Timothy Schwertfeger, Nuveen chairman and CEO, said in a statement that Symphony’s alternative investment strategy will be used in managing high-net-worth assets.
Mr. Skelton added that Symphony will become a client of its former parent company in order to continue using BARRA’s portfolio management analytical services.
