Nuveen buys Arcmont, forming Nuveen Private Capital

Rachel Lewis
28 October 2022

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US-based Nuveen, the investment manager of pension fund TIAA, has acquired Arcmont Asset Management, one of the few independently owned private debt investors in Europe.

Nuveen will bring Arcmont together with its US-based private lending shop, Churchill Asset Management, to form Nuveen Private Capital, but both firms will continue to be managed by their respective leadership teams.

Ken Kencel, Churchill CEO and president, and Anthony Fobel, Arcmont CEO, will be co-CEOs of Nuveen Private Capital, reporting to William Huffman, head of Nuveen equity and fixed income.

The new body will manage more than USD 60bn of committed capital.

The deal comes as banks have all but shut shop on underwriting leveraged buyouts by halting primary syndicated issuances, forcing GPs to turn to private lenders to finance M&A transactions.

The buoyant private lending market has seen investors like ICG and Fidelity market new fundraises, as well as further consolidation in the space, with UK-based Alcentra bought by Benefit Street Partners and General Atlantic acquiring Iron Street Capital in the US.

Arcmont has raised more than USD 26bn since its inception in 2011, it said in a statement. The firm has recently started marketing its fourth flagship direct lending fund with a target of EUR 10bn, as reported by Bloomberg.

The investor recently closed a EUR 800m Capital Solutions Fund, to provide high-yielding financing in its first foray out of direct lending.

The controlling stake acquired by Nuveen includes the minority stake held by Dyal Capital, via its Dyal Capital Partners IV fund.

In July, Dyal upped its stake in Arcmont to replenish its war chest for possible market consolidation and new strategies, as reported by Unquote sister publication Mergermarket.

Arcmont underwrote Hg and TA Associates' GBP 3.5bn refinancing of Access Group, which valued the business software provider at GBP 9.2bn.

It also part-financed Oakley's GBP 1bn-plus buyout of UK-based testing and compliance provider Phenna Group, and Partners' EUR 1bn acquisition of ERP provider Forterro.

The transaction is expected to close in the first half of 2023, subject to Financial Conduct Authority and other regulatory approval. Macfarnales provided legal advice on the deal to Arcmont.

People
Churchill Capital - Ken Kencel (CEO and president).
Arcmont - Anthony Fobel (CEO).
Nuveen - William Huffman, (head of equity and fixed income).