Russell Investments’ CEO Zach Buchwald framed the deal as a long-term partnership to improve client outcomes and access to expertise.

CalPERS deputy CIO Anton Orlich described the deal as an opportunity to build a next-generation asset manager and support Russell’s growth and investment solutions.

Post-close, Russell will operate independently under current leadership, with Buchwald as CEO and Kate El-Hillow as President and CIO, and will pursue open-architecture offerings, tech-driven customization, analytics, and broader investor access.

The transaction will enable expansion of outsourced CIO offerings, portfolio implementation, and self-directed investing, leveraging ongoing organic growth of over 15% in recent years.

The deal is expected to close in early 2027, subject to regulatory approvals, with leadership continuity maintained.

A consortium led by B Capital, including CalPERS, agreed to acquire Russell Investments from TA Associates Management L.P. and Reverence Capital Partners in a deal valued at about $2.8 billion.

The investment aims to provide long-term capital and accelerate growth for Russell Investments, positioning the company for a next-generation asset manager strategy.

Russell Investments, a Seattle-based firm with more than $416 billion in assets under management, has a long history and operates an open-architecture model, while B Capital is a multi-stage firm with over $12 billion AUM and CalPERS is the largest U.S. defined-benefit public pension.

Russell is positioned to shape the future of asset management through sustained capital, technology, and client-focused strategies.

Ganguly said the choice of partner emphasized established staff and client relationships over backing a new robo-advisor.

The deal aims to expand institutional outsourcing, portfolio implementation, personalized solutions, model portfolios, tax-managed investing, and self-directed investing within a multi-manager framework.

The current owners position the sale as part of a long-term growth strategy following leadership changes during private-equity ownership, including CEO transitions since 2017.