U.S. Bancorp will receive a 9.5% equity stake in Nuveen in exchange for FAF, which runs $25 billion, Nuveen spokeswoman Kathleen Cardoza confirmed.
FAF Advisors, which manages the First American Funds series, will be combined with Nuveen Asset Management, which is adviser to Nuveen funds. Nuveen’s assets under management will increase to $175 billion.
Thomas S. Schreier Jr. , CEO of FAF Advisors, will become Nuveen Asset’s vice chairman, wealth management. Bill Huffman, current COO and co-head of Nuveen Asset Management, will be named president of the combined businesses.
“Together the acquired FAF business and Nuveen Asset Management, which will operate under the name of Nuveen Asset Management with operations in Chicago and Minneapolis, will create a substantial affiliate within Nuveen Investments’ multiboutique business model,” Mr. Schreier said in the release.
The transaction is expected to close later this year.