TA Associates sells Russell Investments

Russell Investments marks another change in ownership as private equity firm TA Associates announced it will sell the fund manager to a B Capital-led consortium that includes CalPERS.

TA Associates, together with Reverence Capital Partners (RCP), will offload the fund manager, saying their partnership has enabled Russell Investments to drive product innovation, invest in management talent, and accelerate the firm's growth trajectory.

While the price tag was not disclosed, Bloomberg reports the amount came to US$2.8 billion ($4bn), which is more than double what TA Associates paid for Russell Investments at US$1.15 billion ($1.65bn) when it was purchased from the London Stock Exchange Group (LSEG) in 2016. At the time, RCP partnered with TA Associates to take a minority stake in the fund manager.

Russell Investments, which has US$416 billion ($597bn) in global assets under management (AUM), provides institutional outsourcing, portfolio implementation, personalised solutions and model portfolios, tax-managed investing, and self-directed investing through a multi-manager framework.

Frank Russell founded Russell Investments in 1936, originally offering stockbroker and consultancy services.

Northwestern Mutual acquired Russell Investments for US$1.2 billion ($1.7bn) in 1999 and sold it to the LSEG 15 years later for US$2.7 billion ($3.9bn) .

"Helping people build long-term financial security is one of the defining challenges of our time," Russell Investments chief executive Zach Buchwald said.

"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."

CalPERS' deputy chief investment officer Anton Orlich commented: "Russell Investments has built a trusted global franchise grounded in investment excellence and client service. 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."

B Capital has US$12 billion in AUM and invests in companies that are in their early to late-stages, primarily operating in the technology, healthcare and energy sectors.

Facebook co-founder Eduardo Saverin launched B Capital along with Raj Ganguly in 2015.

"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," Saverin and Ganguly said.

"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."

Following transaction, which is expected to close in the first quarter of 2027, Buchwald will continue to lead Russell Investments as chair and chief executive, alongside president and chief investment officer Kate El-Hillow.