(Bloomberg) -- Madison Dearborn Partners LLC has salvaged its bet on Nuveen Investments Inc. almost seven years after the disastrously timed buyout and two years after a star manager’s exit derailed plans for an initial public offering.

Madison Dearborn is set to walk away from the $6.25 billion sale announced yesterday to TIAA-CREF with $1.1 billion, about the same amount it paid to acquire a majority stake in Nuveen, according to a person familiar with the transaction who asked not to be named because the information is private. The Chicago- based private-equity firm paid $5.75 billion in what was then the largest acquisition of a U.S. money manager.

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