Key Takeaways
- • Russell Investments, managing $416 billion in assets, is being acquired by a consortium led by venture capital firm B Capital Group and California Public Employees' Retirement System (CalPERS) for $2.8 billion, with closing expected in Q1 2027 pending regulatory approval.
- • Current owners TA Associates Management L.P. and Reverence Capital Partners LLC, who purchased Russell in 2016 from the London Stock Exchange Group, are exiting the investment after a decade-long hold.
- • CalPERS, managing $634.24 billion in assets as of July 7, 2026, is expanding its role as an active investor in general-partner stakes through this strategic acquisition of the outsourced CIO provider and asset manager.
- • Russell Investments will continue operating independently under existing leadership, with the acquisition designed to support scaling of key business units and expansion of client access to investment solutions.
- • The deal represents a significant consolidation move in the asset management sector, positioning Russell to accelerate growth under long-term institutional ownership focused on innovation and service expansion.
Summary
Russell Investments, a 90-year-old outsourced chief investment officer provider and asset manager, announced its sale to a consortium of institutional investors led by venture capital firm B Capital Group Management L.P. and the California Public Employees' Retirement System on July 9, 2026. The transaction is valued at $2.8 billion and is expected to close in the first quarter of 2027, subject to regulatory approvals.
The acquisition represents an exit for Russell's current owners, TA Associates Management L.P. and Reverence Capital Partners LLC, who acquired the firm in 2016 from the London Stock Exchange Group. Russell Investments currently manages more than $416 billion in assets and serves institutional and individual clients globally through its investment solutions and advisory services.
According to Russell Investments CEO Zach Buchwald, the transaction aligns with the firm's strategic priorities: "Helping people build long-term financial security is one of the defining challenges of our time. 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." The company will maintain its independent operations and existing leadership structure under the new ownership.
CalPERS, which manages $634.24 billion in assets and has been actively investing in general-partner stakes, views the acquisition as an opportunity to support institutional asset management growth. Deputy CIO Anton Orlich stated that the partnership "creates a compelling opportunity to build a next-generation asset manager" while expanding client access to innovative investment solutions. The deal signals CalPERS' strategic shift toward long-term capital deployment in established asset managers rather than exclusive reliance on external manager relationships.
The transaction underscores continued consolidation in the asset management industry, with institutional investors seeking to build scaled platforms capable of competing in an evolving investment landscape. Russell's combination with B Capital's venture experience and CalPERS' institutional expertise positions the firm to accelerate growth in outsourced CIO services and expand its product offerings.
The acquisition represents an exit for Russell's current owners, TA Associates Management L.P. and Reverence Capital Partners LLC, who acquired the firm in 2016 from the London Stock Exchange Group. Russell Investments currently manages more than $416 billion in assets and serves institutional and individual clients globally through its investment solutions and advisory services.
According to Russell Investments CEO Zach Buchwald, the transaction aligns with the firm's strategic priorities: "Helping people build long-term financial security is one of the defining challenges of our time. 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." The company will maintain its independent operations and existing leadership structure under the new ownership.
CalPERS, which manages $634.24 billion in assets and has been actively investing in general-partner stakes, views the acquisition as an opportunity to support institutional asset management growth. Deputy CIO Anton Orlich stated that the partnership "creates a compelling opportunity to build a next-generation asset manager" while expanding client access to innovative investment solutions. The deal signals CalPERS' strategic shift toward long-term capital deployment in established asset managers rather than exclusive reliance on external manager relationships.
The transaction underscores continued consolidation in the asset management industry, with institutional investors seeking to build scaled platforms capable of competing in an evolving investment landscape. Russell's combination with B Capital's venture experience and CalPERS' institutional expertise positions the firm to accelerate growth in outsourced CIO services and expand its product offerings.
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