Plans include expanded access to advisor tools as US$416B asset manager stays independent
Advisors who rely on Russell Investments for outsourced CIO work, model portfolios, or tax-managed accounts can expect continuity of service as the firm changes hands, with its existing leadership team and investment staff remaining in place after the deal closes.
An investor group headed by B Capital, alongside the California Public Employees' Retirement System, has agreed to buy Russell Investments from current owners TA Associates and Reverence Capital Partners, the Seattle-based firm announced Thursday.
The sale comes as Russell Investments reports more than US$416 billion in global assets under management and organic growth exceeding 15% over the past two years.
Zach Buchwald, the firm's chairman and chief executive, will continue leading Russell Investments alongside president and chief investment officer Kate El-Hillow once the transaction closes, with the firm's mission, investment teams, and client-facing staff unchanged. Buchwald framed the sale as a vote of confidence in the company's approach to long-term investing.
"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. 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."
New tools
Backed by the new consortium, Russell Investments intends to broaden its open-architecture model through additional technology, customization, and analytics, and says it sees room for further expansion across institutional outsourcing, portfolio implementation, personalized and model portfolio solutions, tax-managed investing, and self-directed multi-manager accounts.
Eduardo Saverin and Raj Ganguly, who serve as co-founders and co-chief executives of B Capital, pointed to Russell Investments' track record across pension consulting and indexing as a foundation for the next phase of ownership.
"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," 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."
CalPERS deputy chief investment officer Anton Orlich said the pension fund's involvement reflects confidence in Russell Investments' client base and growth trajectory.
"Russell Investments has built a trusted global franchise grounded in investment excellence and client service," Orlich said. "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."
Exceptional company
For sellers TA and RCP, the deal caps a decade-long partnership with Russell Investments that began in 2016 and included investment in product development and management talent, a period during which the firm outgrew its publicly traded rivals.
"Russell Investments is an exceptional company with world-class talent and outstanding business performance," said Todd Crockett, managing director at TA, and Milton Berlinski, co-founder and managing partner at RCP. "We're proud of what this team has built, and we're excited for its future."
The transaction is expected to close in the first quarter of 2027, pending regulatory approval and other customary closing conditions. Jefferies served as sole financial advisor to B Capital, while Moelis & Company acted as lead financial advisor and BofA Securities as financial advisor to Russell Investments.
