Outsourced CIO provider and asset manager Russell Investments announced Thursday that it will be sold to a consortium of investors, namely venture capital firm B Capital Group Management L.P. and the California Public Employees’ Retirement System. The transaction, reportedly valued at $2.8 billion, is expected to close in the first quarter of 2027, pending regulatory approvals.
Russell Investments’ current owners, TA Associates Management L.P. and Reverence Capital Partners LLC, purchased the firm in 2016.
“Helping people build long-term financial security is one of the defining challenges of our time,” said Russell Investments CEO Zach Buchwald in a statement. “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.”
Russell, which manages more than $416 billion in assets, will continue to operate independently under its existing leadership team, according to a statement from the firm. The acquisition is intended to help Russell scale its key businesses.
“Russell Investments has built a trusted global franchise grounded in investment excellence and client service,” said CalPERS Deputy CIO Anton Orlich in a statement. “We believe the partnership and shared vision of Russell Investments and the Investor Consortium creates a compelling opportunity to build a next-generation asset manager. We look forward to supporting the business as it expands access to innovative investment solutions, accelerates growth, and helps shape the future of investing.”
CalPERS managed $634.24 billion in assets as of July 7 and has been an active investor in general-partner stakes. The pension fund previously provided $50 million to a GP stakes fund from Wafra, and has also seeded funds from GCM Grosvenor and TPG.
“As global investors in transformative technologies, we firmly believe the future of asset management lies at the intersection of investment expertise, personalized client service, and innovation,” said B Capital Co-CEOs Eduardo Saverin and Raj Ganguly in a statement. “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.”
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Tags: CalPERS, Russell Investments