Nuveen executives held a conference call this morning at to discuss the firm's sale to a private equity group led by Madison Dearborn Partners LLC
Here are some highlights:
, outgoing CEO:
"The new ownership structure will help create and retain new talent. I have been with Nuveen for 30 years, 11 as CEO. Nuveen's transition to private ownership is a good point to start the transition to new leadership."
John P. Amboian
, president and director (Amboian will become CEO effective July 1):
"The overall strategic direction will not change. the deal will foster a positive, stable environment for investment teams."
From the Q&A with analysts:
Q: What is the impact on the investment team, any change of control issuers, contacts up for negotiation?
A: We will continue to work with each of the teams to foster stable and healthy environment. We will supplement support with incentive-based opportunities. There will be a consent process with fund advisory agreements. We do not anticipate a problem with this.
Q: Why now?
A: We are still feeling we have a lot of investing we can do, this will allow us to accelerate the pace of investment and growth capabilities. MDP's assertiveness in presenting a thoughtful presentation also helped the process.
Q: Why the small timeframe for competing offers?
A: A 30-day window is just standard, we have not thought it about beyond that.
Q: What drives going private?
A: The valuation was compelling and striking, we can also build our business at faster pace.
Q: What types of investments will you accelerate?
A: We would like to build new investment platforms, recruit more talent, and build additional distribution channels.
Q: Was the bidding process a competitive process?
A: That information will be filed as part of proxy in about 45 days.
Q: Are you interested in more acquisitions?
A: We will continue to pursue this option, if we did we would be looking for added distribution access and technology capabilities. This has been part of the dialog with MDP.
Q: What will the management structure look like post-merger?
A: Not been discussed at all.
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