US-based asset manager Nuveen has snapped up Arcmont Asset Management, a leading European private debt investment manager in a deal worth more than $1bn.
The acquisition will deepen Nuveen’s private capital expertise and drive its presence into Europe, complementing its North American private debt and private equity investment specialist Churchill Asset Management.
Since its inception in 2011, Arcmont has raised more than $26bn from more than 350 blue-chip investors and has committed more than $20bn to 270 transactions across Europe. The firm has around 100 employees spread across six offices in Europe.
“Arcmont provides Nuveen with a transformational opportunity to significantly expand our position in one of the world’s most dynamic investment markets and strengthen our focus on meeting the increasingly complex capital needs of clients globally,” said Jose Minaya, Nuveen chief executive officer.
“We are thrilled to welcome Arcmont’s professionals, who share with Nuveen deep experience and skills, consistent flexibility and innovative thinking in delivering private capital – as well as a culture of investment excellence rigorously focused on creating long-term value for stakeholders.”
Anthony Fobel, Arcmont CEO, said: “We are delighted to join Nuveen, which offers Arcmont an optimal partnership to grow our existing business model, as well as invest in complementary adjacent strategies, leveraging Nuveen’s considerable expertise and distribution capabilities.
“Drawing on the strengths of the enlarged group, we expect to extend our market position in our core business of upper middle market lending in Europe. We look forward to working closely with our new partners and expanding together into new strategies and complementary products across geographies.”
The combination of Arcmont and Churchill will create one of the world’s largest private debt managers, to be known as Nuveen Private Capital, with more than $60bn in combined committed capital, bringing Nuveen’s firmwide alternative credit assets under management to $178bn.
Nuveen CEO Minaya added: “Scale is a significant differentiator in private capital fundraising and deployment, so our complementary capabilities will greatly benefit from a more diversified set of limited partners, enhancing our ability to raise capital – and also accelerating our growth across the entire private debt market.”
Kencel and Fobel will be co-CEOs of Nuveen Private Capital reporting to William Huffman, head of Nuveen equity and fixed income, which includes global equities, taxable fixed income, municipals, multi-asset and private capital.
Huffman will also serve as chair of Nuveen Private Capital. Both Arcmont and Churchill will continue to operate under their respective names and brands, with no change to their respective investment teams or processes.
As private debt has continued to experience rapid growth, reaching a record $1.4trn in AUM globally in 2022, Nuveen has continually responded to market demand by adding to its debt-focused products and investments.
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