A consortium led by private investment firm B Capital has agreed to acquire global investment solutions provider Russell Investments from private equity firms TA Associates and Reverence Capital Partners, as the asset manager looks to expand its technology capabilities and accelerate growth.
The investor group also includes California Public Employees’ Retirement System, better known as CalPERS, according to a statement. Financial terms of the transaction were not disclosed.
Seattle-headquartered Russell Investments manages more than $416 billion in assets and has recorded more than 15% organic growth over the past two years. The firm provides investment solutions to institutional and retail clients across public and private markets.
The firm said its new owners would provide long-term capital, technology expertise and experience in scaling businesses as it seeks to broaden access to its investment platform.
Russell Investments said it plans to extend its open-architecture investment approach through greater use of technology, customization, and analytics.
It will continue to invest in portfolio capabilities across institutional outsourcing, portfolio implementation, model portfolios, tax-managed investing, and self-directed investing.
Chief Executive Zach Buchwald said the firm and the investor consortium share a long-term view of investing and aim to expand access to investment expertise and portfolio solutions.
B Capital co-founders and co-chief executives Eduardo Saverin and Raj Ganguly said they see the future of asset management at the intersection of investment expertise, personalized client service and technology.
Russell Investments, they added, has a history of innovation spanning outsourced chief investment officer services, pension consulting, and smart beta strategies.
Following the completion of the transaction, Russell Investments will continue to operate independently under its existing leadership team, led by Buchwald and President and Chief Investment Officer Kate El-Hillow, with its investment professionals and client teams remaining in place.
For TA Associates and Reverence Capital Partners, the sale concludes an investment that began in 2016.
The firms said they had worked with Russell Investments to drive product innovation, strengthen management and accelerate growth, with the company outperforming publicly traded asset management peers over the past two years.
The transaction is expected to close in the first quarter of 2027, subject to regulatory approvals and other customary closing conditions.