Chicago-based Nuveen Investments Inc., which serves institutions and wealthy investors, said U.S. Bancorp will receive a 9.5 percent stake in the company and an $80 million cash payment in exchange for the long-term asset business of U.S. Bancorp’s FAF Advisors.

FAF, which manages $25 billion of long-term assets and is adviser of the First American Funds, will be combined with Nuveen Asset Management, which manages $75 billion in municipal fixed income assets and is adviser of the Nuveen funds.
Upon completion of the deal, Nuveen Investments will see assets under management rise to $175 billion from $150 billion.

Nuveen is a portfolio company of Chicago-based private equity firm Madison Dearborn Partners.

“The resulting business will bring together Nuveen Asset Management’s market-leading municipal bond expertise with FAF’s proven and distinct investment capabilities, including taxable fixed income, real assets, equities and asset allocation,” said John Amboian, chairman and chief executive of Nuveen Investments.

To read the announcement, click here.