Russell Investments Acquired.
CalPERS and B Capital Acquire Russell Investments, Aiming for Long-Term Growth and Tech Expansion.
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Key Points
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It's not normal for a venture capital firm to buy a 90-year-old business from private equity, but we could see more of this as legacy industry looks to AI for growth and relevance.
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TA Associates and Reverence Capital first attempted to sell Russell in 2016 through a Goldman-led process that proved unsuccessful.
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Russell Investments has reported more than 15% organic growth over the past two years, underscoring momentum as ownership changes hands.
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Zach Buchwald, Russell Investments' chairman and CEO, framed the deal around a long-term mission: 'Helping people build long-term financial security is one of the defining challenges of our time.'
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The ownership group intends to expand Russell's open-architecture platform by sourcing strategies from a broad range of asset managers and enhancing technology, portfolio customization, analytics and client access across public and private markets.
B Capital and CalPERS have agreed to acquire Russell Investments for around $2.8 billion, according to Axios. The deal takes the 90-year-old asset manager away from private equity owners TA Associates and Reverence Capital Partners, who bought Russell in 2016 for $1.15 billion.
Russell manages more than $416 billion in assets. The deal is expected to close in the first quarter of 2027, pending regulatory approval, Investment News reported.
Why a Venture Capital Firm Is Buying a 90-Year-Old Asset Manager
B Capital is a venture capital firm. It normally backs early-stage tech companies, not legacy asset managers. This deal breaks that pattern. The reason: AI. Axios noted the move could signal a broader trend of tech-minded investors buying traditional finance firms to drive AI-led growth.
The new ownership group plans to expand Russell's open-architecture platform. That means sourcing strategies from a wide range of asset managers. They also plan to upgrade technology, portfolio customization, and analytics across public and private markets, according to Pulse2.
CalPERS Joins as a Strategic, Long-Term Backer
CalPERS — the California Public Employees' Retirement System — is one of the largest pension funds in the United States. Its involvement gives the deal financial weight and long-term credibility. IPE reported that CalPERS is joining the B Capital-led consortium as a key investor.
Russell CEO Zach Buchwald framed the deal in broad terms. 'Helping people build long-term financial security is one of the defining challenges of our time,' he said. The new owners say they plan to invest long-term capital and bring technology expertise to the firm, according to AI-CIO.
Russell's Growth Story Made It an Attractive Target
Russell Investments has reported more than 15% organic growth over the past two years. That momentum likely made it easier to attract buyers. TA Associates and Reverence Capital had tried to sell Russell before — a Goldman Sachs-led process in 2016 that went nowhere, Axios noted.
The $2.8 billion price tag is more than double what TA and Reverence paid nine years ago. That jump reflects both Russell's growth and rising valuations in the asset management space.
Asset Management Consolidation Is Picking Up Speed
The broader industry is under pressure. Investors keep moving money from active funds into cheaper passive strategies like index funds. That cuts fees and squeezes profits for traditional managers. Firms are merging and selling to find scale and cut costs, Investment News reported.
This deal fits that pattern — but adds a new twist. Bringing in a tech-focused venture firm suggests some buyers believe technology, not just scale, is the path forward for old-guard asset managers. Whether that bet pays off will take years to know.
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