Global asset manager Nuveen agreed to acquire investment advisor Brooklyn Investment Group, along with its parent, Brooklyn Artificial Intelligence. The transaction will allow Nuveen to use Brooklyn Investment Group’s multi-asset direct indexing expertise to speed up the integration of its alternative and lifetime income investment products into direct indexing, tax-advantaged options. It will also streamline account onboarding, maintenance and reporting for Nuveen’s financial advisor clients and provide them with access to Brooklyn Artificial Intelligence’s proprietary, white-label direct indexing technology. The terms of the transaction were not disclosed.
Nuveen and Brooklyn Investment Group previously entered into a strategic partnership agreement in 2023, launching joint traditional direct indexing, tax-advantaged long-short portfolios and multi-asset products that combine tax-advantaged equity with fixed income assets. Around the same time, Nuveen and TIAA Ventures also took a minority stake in the firm.
“Every day we hear from advisors about the demand for personalized multi-asset strategies with the returns that private market allocations offer,” Nuveen CEO Bill Huffman said in a statement. “Through this partnership, we’ll unlock smart, always-on tax management and combine the market expertise that distinguishes Nuveen and the innovative technology that Brooklyn has pioneered. Together, we will reshape the direct indexing landscape by delivering alternatives and lifetime income in an expanded set of customizable solutions.”
According to a statement from Brooklyn Investment Group CEO Erkko Etula, “The strength of Nuveen’s wealth team, their relationships with advisors, investment capabilities, and culture, and our shared commitment to advancement make this the perfect fit as we expand our collaboration across additional asset classes.”
Nuveen’s investment in expanding its direct indexing capabilities follows a growing trend among asset managers and financial technology platforms as the volume of assets in direct indexing products reaches double-digit annual growth. For example, in January, San Francisco-based Frec, a direct indexing platform for self-directed investors, added a portfolio allocation tool that lets users manually rebalance their portfolios whenever they choose. In late May, Goldman Sachs Asset Management introduced a new feature for its tax-advantaged core strategies, allowing RIA clients to review an ETF’s underlying holdings to monitor for risks and tax trade-offs.
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