Nuveen Acquisition: Will An ETF Provider Jump In?

One of the ETF websites, ETF Connect, offers information about closed-end funds and ETFs. This site is run by Nuveen Investments (JNC), which doesn't even have ETFs, in fact, they are the largest U.S. closed-end fund company.

While they are not in the ETF business, it is curious that they have an ETF related site. Could it be they are testing the waters to jump into ETF offerings?

Now there is news that Nuveen will be acquired by Madison Dearborn Partners. Jason Kelly and Sree Vidya Bhaktavatsalam of Bloomberg report that Madison Dearborn, which manages private-equity funds, was attracted to Nuveen because their closed-end assets are not subject to investor withdrawals and are a steady source of fee revenue. Closed-end funds make up about 32% of Nuveen's assets while other offerings include mutual funds and separately managed accounts.

What does this mean for ETFs? Both Nuveen and Madison Dearborn are not in the ETF business, but ETF Connect is a fairly popular website. It will be interesting to see how the acquisition plays out, how the website is handled, and if ETFs will become a focal point of the business. Nuveen has until mid-July to solicit other offers; could an ETF provider jump in?

Related: Nuveen Takeover Makes Legg Mason and Federated Look Cheap