Nuveen Investments Inc. announced Thursday it will buy FAF Advisors from U.S. Bancorp.

Nuveen, a Chicago-based investment manager for institutions and high-net-worth investors, said it will give U.S. Bancorp a 9.5% stake in the company and cash consideration in exchange for the unit, which manages $25 billion of long-term assets and serves as the advisor of the First American Funds. The business will be merged with Nuveen Asset Management, which manages $75 billion in municipal fixed income assets and serves as advisor of the Nuveen funds.

When the deal is completed later this year, Nuveen, which has $150 billion of assets under management, would manage a combined total of $175 billion in institutional and retail assets.

John Amboian, Nuveen’s chairman and chief executive officer, said in a press release that the combined organization will bring together Nuveen Asset Management’s municipal bond expertise with FAF’s investment capabilities, including taxable fixed income, real assets, equities and asset allocation.

“The FAF investment teams joining Nuveen Asset Management will continue to follow their established investment processes under their current investment leaders,” he said. “Additionally, and importantly, the combination will help scale and diversify Nuveen Investments’ mutual fund lineup by building upon the successes of First American Funds and Nuveen Funds.”

Tom Schreier, FAF’s CEO, said that he hopes to maintain a “strong partnership” with U.S. Bancorp, particularly with its wealth management business. He would become vice chairman of wealth management at Nuveen and manage its efforts to expand the wealth management platform. Bill Huffman, current co-head and chief operating officer of Nuveen Asset Management, will become president of the combined Nuveen Asset Management businesses.

Through the acquisition, Nuveen hopes to enhance its multi-boutique model, which also includes NWQ Investment Management, Santa Barbara Asset Management, Symphony Asset Management, Tradewinds Global Investors, Winslow Capital and Nuveen HydePark.

U.S. Bancorp will retain the investment products and capabilities to support custom cash management, securities lending, and stable value and advisory services to the First American Money Market Funds. That team will be led by Joseph Ulrey, who will be named chief executive of U.S. Bancorp Asset Management.