National Investment Services of America, Milwaukee, split itself into three separately owned entities in a move to help ease succession of ownership for the firm.
The new firms will be called: NISA Investment Advisors, which will manage about $3.3 billion in fixed-income and nuclear decommissioning trust assets; National Investment Services, with about $1 billion in growth equity and fixed-income assets; and National Quantitative Equity Services, with about $650 million in quantitative equity portfolios.
Joseph Gorman, the majority owner of the original NISA, put together the break-up plan, NISA employees said. Mr. Gorman will continue with National Quantitative Equity in Milwaukee, although his title is not determined. The plan resulted from a problem of how to give the current owners full value of the firm, while at the same time letting a second generation of owners take over, the employees said.
"Credit Joe with a brilliant move," said Robert E. Kelly, who headed up NISA's Chicago office, and will be chairman of National Investment Services. Mr. Kelly said the split is a natural progression of the growth of NISA into three different market segments.
Nardin Baker, a NISA vice president, wouldn't talk specifics regarding the buy-out structure, but noted payment for the firm will span five years.
Mr. Baker, who hasn't gotten a title yet at National Quantitative, said the breakup has resulted in "a flowering of energy" for all three groups.
Jess Yawitz, executive vice president, will stay in St. Louis as chief executive of NISA Investment Advisors. Mr. Yawitz said although there no plans to do so, the breakup would make it easier for parts of the firm to be sold to an outsider.
All three firms will share offices for the remainder of the old NISA's lease, which expires in October, Mr. Kelly said.