Russell Investments to Be Acquired by B Capital–Led Consortium
Russell Investments has entered into an agreement to be acquired by an investor consortium led by B Capital and including the California Public Employees’ Retirement System (CalPERS), positioning the global asset manager to expand its technology capabilities and personalized investment solutions.
The consortium will acquire Russell Investments from private equity firms TA Associates and Reverence Capital Partners, which have jointly owned the firm since 2016. Financial terms were not disclosed by Russell Investments, although Bloomberg News reported the transaction is valued at approximately $2.8 billion.
Following the close of the transaction, Russell Investments will continue to operate independently under its current leadership team, including Chairman and Chief Executive Officer Zach Buchwald and President and Chief Investment Officer Kate El-Hillow.
The new ownership group plans to build on Russell’s open-architecture investment platform by expanding access to technology, analytics and customized investment solutions. The firm also expects to grow across several core business lines, including outsourced chief investment officer (OCIO) services, portfolio implementation, model portfolios, tax-managed investing and self-directed investment solutions within its multi-manager framework.
“Helping people build long-term financial security is one of the defining challenges of our time,” Buchwald said. “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.”
B Capital co-founders and co-chief executive officers Eduardo Saverin and Raj Ganguly said the future of asset management will be driven by the combination of investment expertise, client service and technological innovation.
CalPERS Deputy Chief Investment Officer Anton Orlich said the partnership provides an opportunity to help build a next-generation asset manager.
The acquisition comes as Russell Investments reports more than $416 billion in assets under management and organic growth exceeding 15% over the past two years, outperforming the growth rate of many publicly traded asset managers. The transaction marks the exit of TA Associates and Reverence Capital Partners after nearly a decade of ownership and positions Russell to continue investing in digital capabilities and customized wealth management solutions.
The transaction is expected to close in the first quarter of 2027.
Jefferies LLC served as sole financial advisor to B Capital, and Ropes & Gray LLP served as legal counsel. Moelis & Company LLC served as lead financial advisor and BofA Securities served as financial advisor to Russell Investments, with Goodwin Procter LLP serving as legal counsel.
