8 hours ago - Business

Russell Investments getting sold for $2.8 billion

Dan Primack

Illustration of a piggy bank and DNA surrounded by abstract shapes and money. — Illustration: Axios Visuals

B Capital and CalPERS on Wednesday agreed to acquire Russell Investments from TA Associates and Reverence Capital Partners.

Why it matters: 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.

Zoom in: No financial terms were disclosed, but a source familiar pegs the price-tag at around $2.8 billion. TA and Reverence had paid $1.15 billion to buy Russell in 2016 from LSEG.

Seattle-based Russell has around $416 billion in assets under management.

Catch up quick: This deal comes seven years after TA and Reverence first tried to sell the business, in a Goldman-led process that was unsuccessful, and six months after an Apollo-led debt restructuring.

Go deeper, via Citywire: "The intertwined secular trends of fee compression and outflows from actively managed mutual funds into passive funds and ETFs have created a wave of mergers in the asset management industry."

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Russell Investments getting sold for $2.8 billion

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