Last updated: 08:57 / Wednesday, 20 January 2016
And distribution platform

Nuveen Investments to Acquire Incapital’s Unit Investment Trust Platform

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Nuveen Investments to Acquire Incapital’s Unit Investment Trust Platform
  • Acquisition Builds Upon Nuveen and Incapital’s Current Unit Trust Partnership
  • Transition of Incapital Unit Trust Strategies, People, Technology and Operations Platform to Nuveen Ensures Continuity
  • Expanded Sales Force Dedicated to Unit Trusts to Better Serve Existing and New Advisor Relationships

Nuveen Investments, announced early January that it has entered into an agreement with Incapital to acquire Incapital’s Unit Investment Trust (UIT or Unit Trust) platform.

Since early 2014, Nuveen Investments has partnered with Incapital to provide marketing and distribution support to several of Incapital's Unit Trusts for which Nuveen's boutique investment affiliates have also served as portfolio consultant.This transaction builds on that successful partnership.

The acquisition reinforces Nuveen Investments' commitment to strengthening its growing leadership position in the retail marketplace by providing investors with access to the investment ideas of premier asset managers recognized for high-quality results in their distinct areas of investment expertise. According to a press release, Incapital's Unit Trust platform is similar to Nuveen Investments' multi-boutique model and "is consistent with the firm's strategy of working with a variety of asset managers to bring highly differentiated and institutional-caliber investment capabilities to clients." Going forward, Nuveen Investments will sponsor UITs that utilize the portfolio consultant services of unaffiliated asset managers, including those currently involved with Incapital UITs, while also developing new Unit Trust strategies leveraging the expertise of its seven investment affiliates and the capabilities of TIAA Asset Management.

Nuveen Investments will be acquiring Incapital's Unit Trust distribution platform. Key Incapital personnel currently supporting the Unit Trust platform in the areas of sales, product development and management, marketing, IT and operations will join Nuveen Investments. Together with Nuveen Investments' own recently enhanced Unit Trust sales and distribution team, the Nuveen Investments Unit Trust platform will have significant and dedicated resources to ensure continuity of coverage for existing broker-dealer and IBD relationships. The Unit Trust team will work closely with Nuveen Investments' national accounts team to introduce and expand the use of Unit Trusts by dealers not presently doing UIT business with Incapital, yet looking for investment products to address their clients' particular investment needs.

"We are pleased to formally bring together Nuveen and Incapital's UIT teams to build on our excellent work together and enhance our ability to deliver quality investment solutions and service to our clients. We are also pleased to add the high-quality investment capabilities of Incapital's portfolio consultant partners to the investment capabilities of Nuveen's investment affiliates and TIAA Asset Management that will enable us to offer a compelling array of UIT portfolio strategies," said William Adams IV, Nuveen Investments Senior Executive Vice President, Global Structured Products.

Inapital Chief Executive Officer John DesPrez added, “As we move forward to focus more sharply on our core business of providing risk-managed investment solutions, we are pleased to partner with Nuveen Investments to transition our dynamic UIT business to their team. Nuveen has been an outstanding partner in building our UIT platform and developing a strong and diversified array of strategies for the benefit of our shared clients. I am also extremely proud of the team we have built. They are experienced professionals with a proven record of success.  I am happy for them, too, as they will be joining a firm respected throughout the industry.” 

The transaction, while subject to customary closing conditions, is expected to close in the second quarter of 2016. Nuveen was advised by Wells Fargo Securities, LLC. Incapital was advised by Grail Partners. Terms of the transaction were not disclosed.

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