Specific terms of the deal, expected to close before the end of the year, are not being disclosed, said William Adams, executive vice president, Nuveen Investments, in an interview.
However, Jonathan Spencer, president of Gresham Investment Management, confirmed in an interview the remaining 40% stake in the firm will be held by Gresham employees. About 90% of Gresham's current employees have an ownership stake in the firm, Mr. Spencer said. He stressed “there will be no change” in Gresham's investment and administrative teams, and the firm will continue to operate independently under its own name after the deal has closed.
Gresham will remain subadviser of the $220 million Nuveen Diversified Commodity Fund, an exchange-traded public partnership fund, and Mr. Adams said it is possible that Gresham will subadvise additional commodity-related funds under the Nuveen name.
In striking the deal, UBS Investment Bank advised Nuveen Investments and N.M. Rothschild & Sons advised Gresham Investment Management.
Gresham managed nearly $14 billion for mostly institutional clients as of Oct. 31 in diversified commodity investment portfolios using commodity futures.