B Capital-led consortium agrees to acquire Russell Investments
An investor consortium led by B Capital and including California Public Employees’ Retirement System (CalPERS) have sealed a deal to buy Russell Investments from TA Associates and Reverence Capital Partners.
Bloomberg sources said the deal values the business at $2.8bn .
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The sale comes as Russell Investments oversees more than $416bn in assets under management worldwide and reports organic growth of more than 15% over the past two years.
The company, which has operated for more than 90 years, uses an open-architecture structure to build portfolio offerings across public and private markets.
Russell Investments said the incoming owners would provide long-term funding, technology capabilities and experience in expanding businesses.
Backed by the consortium, the firm intends to widen the reach of its open-architecture model through technology, more tailored offerings, analytics and broader access.
It identified further opportunities in institutional outsourcing, portfolio implementation, personalised solutions and model portfolios, tax-managed investing, and self-directed investing through a multi-manager framework.
B Capital Co-founders and co-CEOs Eduardo Saverin and Raj Ganguly said: “As global investors in transformative technologies, we firmly believe the future of asset management lies at the intersection of investment expertise, personalised client service, and innovation.
“From OCIO and pension consulting to innovative indexes and smart beta, Russell Investments has always been a trailblazing firm built on client trust. We look forward to partnering with Zach and the entire team to bring even more advanced technology and relationship-focused investing to people around the world.”
After the transaction is completed, Russell Investments will remain independent and keep its current leadership structure.
Chairman and chief executive Zach Buchwald as well as president and chief investment officer Kate El-Hillow will continue in their roles.
For TA Associates and Reverence Capital Partners, the agreement brings their investment in Russell Investments to an end.
Since 2016, the two firms and Russell Investments have worked together on product development, management hiring and the company’s expansion.
The deal is expected to complete in the first quarter of 2027, subject to regulatory clearance and other standard closing conditions.
Russell Investments CEO Zach Buchwald said: “Helping people build long-term financial security is one of the defining challenges of our time.
“We’re excited to partner with these world-class investors because we share a long-term view of investing and the belief that it can meaningfully improve people’s lives. Together, alongside our clients, we’ll build a future where more people have access to the expertise and investment solutions they need to achieve their goals.”
