Russell Investments, the Seattle-based portfolio solutions firm, has been acquired by an investor consortium led by B Capital that includes one of the largest global asset allocators, the California Public Employees’ Retirement System (CalPERS).
The purchase price was not announced but the acquisition is from TA Associates and Reverence Capital Partners, which took ownership of the firm in 2016. Since then, Russell Investments has hit $416 billion in global AUM and has had more than 15% organic growth over the past two years, officials said.
“Helping people build long-term financial security is one of the defining challenges of our time,” said Russell Investments CEO Zach Buchwald. “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.”
Russell Investments will continue to operate independently under its existing leadership team, led by Buchwald and President and CIO Kate El-Hillow. The firm’s mission, investment professionals, and client teams will remain unchanged.
Buchwald joined Russell Investments in 2023 from BlackRock, where he headed the firm’s institutional business. El-Hillow joined Russell Investments in 2021 from Goldman Sachs Asset Management, where she was deputy chief investment officer of Multi-Asset Solutions.
Valuation and the growth of private markets
The storied investment consultant and asset management firm has been in business for over 90 years and was publicly traded prior to its acquisition by TA Associates and Reverence Capital. Some media outlets have reported the deal valuation at $2.8 billion, but officials declined to confirm that figure.
The London Stock Exchange originally acquired the firm, then known as Frank Russell Company, from Northwestern Mutual in 2015 for $2.7 billion, when it managed $260 billion in assets. LSE then sold the firm to TA Associates for $1.15 billion in 2016, including Reverence Capital’s minority stake.
Since partnering in 2016, TA, Reverence Capital, and Russell Investments have worked together to drive product innovation and invest in management talent. Russell Investments now has $23 billion in alternative investment assets offering investment solutions within hedge funds, commodities, private credit, private equity, venture capital, private infrastructure, and private real estate. The firm monitors nearly 9,000 private markets products.
A big week for B Capital
According to B Capital Co-Founders and Co-CEOs Eduardo Saverin and Raj Ganguly, the future of asset management can be found at the intersection of investment expertise, personalized client service, and innovation. The pair touted Russell’s OCIO offerings, pension consulting, indexes, and smart beta offerings.
“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,” said Saverin and Ganguly in a press statement.
For the $12 billion San Francisco-based B Capital, the deal is outside its typical technology-oriented investments ranging from seed to late-stage venture growth equity. The firm announced Monday the final close of its B Capital Ascent Fund III at its $500 million hard cap. Ascent Fund III will invest primarily in seed-, Series A-, and Series B-stage companies building next-generation technologies across healthcare, enterprise, energy, and other sectors, with a focus on innovation hubs in North America and Asia.
It is not clear whether Ascent Fund III will provide any of the capital for the Russell Investments acquisition; officials have not disclosed the financing structure behind the deal. At any rate, the Russel Investments deal extends B Capital’s relationship with CalPERS, which includes a $700 million co-investment re-up in late 2025.
CalPERS’ Deputy CIO Anton Orlich said the purchase 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,” Orlich added.
CalPERS, which has historically used Wilshire Associates as its investment consultant, has not engaged with Russell Investments as an asset manager.
Advisors
The transaction is expected to close in the first quarter of 2027, subject to the receipt of regulatory approvals and other customary closing conditions.
Jefferies served as sole financial advisor to B Capital, and Ropes & Gray served as legal counsel. Moelis & Company served as lead financial advisor and BofA Securities served as financial advisor to Russell Investments, with Goodwin Procter serving as legal counsel.