B Capital-led group to acquire Russell Investments

A consortium led by B Capital and including the California Public Employees’ Retirement System has agreed to acquire Russell Investments from TA Associates and Reverence Capital Partners. The companies announced the agreement Thursday and expect the transaction to close in the first quarter of 2027, subject to regulatory approval.

Russell reported $416 billion in global assets under management as of June 30 and recorded more than 15% organic growth over the past two years. The buyer group is described as tech-focused and plans to combine long-term capital with investments in the firm’s technology.

Russell’s exchange-traded funds have produced strong returns this year. The Russell Investments Emerging Markets Equity ETF (REMG) has risen 22.3% year to date and returned 39.5% over the past 12 months, with about $107 million in assets. The Russell Investments U.S. Small Cap Equity ETF (RUSC) is up 21.4% year to date and attracted $16.75 million in inflows over the last four weeks. By asset size, the Russell Investments Global Equity ETF (RGLO) is the largest fund in the lineup at roughly $341 million and recorded $48.5 million in year-to-date inflows.

Russell’s chief executive, Zach Buchwald, framed the sale as an opportunity to advance the firm’s long-term mission and used the phrase: “Helping people build long-term financial security is one of the defining challenges of our time.” He added that the firm and its new partners share a long-term view of investing aimed at improving client outcomes.

B Capital co-founders Eduardo Saverin and Raj Ganguly pointed to Russell’s history in indexing and smart beta as a foundation for future work. Anton Orlich, deputy chief investment officer at CalPERS, described the investment as a chance to help build a next-generation asset manager.

B Capital’s portfolio includes an AI-powered search engine, Perplexity, and Fervo Energy, a developer of geothermal projects. Russell indicated the ownership change will center on long-term capital and technology and noted potential investments in digital platforms, data and analytics, and technology-driven services for clients and advisors.

Financial terms were not disclosed. Until regulatory approvals are complete and the deal closes in early 2027, Russell will remain under its current owners and continue to operate its global product lineup and client relationships.