A group of investment banks and private equity firms will take over asset manager Nuveen Investments for $6.3bn (€4.6bn), marking the largest buyout on record in the mutual funds sector.

Madison Dearborn is leading the investor group that is paying $6.3bn, or $65 a share, for Nuveen Investments. The investors will assume $550m of debt in the deal. The price is a 20% premium to Nuveen's last closing price and values the company at 16 times earnings before interest, taxes, depreciation and amortization, which is well above the 13 times ebitda multiple that is more common for diversified asset managers.