We are pleased to announce that today we have completed the transaction, signed in October 2022, by which Nuveen will acquire a majority interest in Arcmont. A copy of the press release is available here.
Nuveen, the investment manager of TIAA, with $1.1 trillion in AuM, provides Arcmont with an exciting and important strategic step forward, enhancing our ability to serve investors, sponsors and corporates and enabling us to benefit further from the strong global growth trends in private debt.
As part of this transaction, we have established Nuveen Private Capital, a company that will seek to drive synergies between Arcmont and Churchill Asset Management, Nuveen’s North American private debt and private equity investment specialist. Nuveen Private Capital, with a combined AuM of $66.5 billion, becomes one of the largest global private debt managers. Although Arcmont and Churchill will continue to operate as two distinct businesses, as the importance of scale continues to increase, this partnership will enable us to offer both investors and borrowers a broader range of products and financing options and to grow in Europe and North America.
Importantly, as an affiliate of Nuveen, Arcmont will continue to operate as usual and under the Arcmont brand. The firm will be managed by the current leadership team, including Anthony Fobel as CEO, ensuring the continuity of the existing Arcmont business. There will be no change to our team, investment committee or processes.
We remain confident in realising the considerable benefits for our investors from this combination, including:
- Global product offering – we expect to extend our market position of middle-market lending in both Europe and North America, with our greater scale and enhanced capabilities enabling us to target larger, attractive deals, including global financing options.
- Multi-asset capabilities – with the support of Nuveen, we will seek to continue to drive Arcmont’s growth and development into new strategies, which are adjacent and complementary to our business, offering a broader range of products to investors, including access to Nuveen’s capabilities across asset classes.
- Global Scale – Nuveen Private Capital will be one of the world’s largest private debt managers, with more than $66.5 billion in combined committed capital, enhancing our ability to offer investors direct access to European and North American private debt solutions.
- Strong alignment of interest – Arcmont and Churchill employees are material shareholders in Nuveen Private Capital and Anthony Fobel and Ken Kencel, President and CEO of Churchill, will serve as co-CEOs, ensuring a strong long-term alignment between management, shareholders, and investors. Our teams will continue to be incentivised through equity and carried interest as previously.
Established in 2011, Arcmont was one of the pioneers of private debt in Europe, and has since grown to become a leading player in Europe. This transaction allows Arcmont to extend our position as a leading lender to European upper middle-market companies, while providing us with the necessary resources and support to expand into new products and markets and to capitalise on the rapidly growing global market opportunity in private debt.