{"id":791095,"date":"2026-07-09T18:40:09","date_gmt":"2026-07-09T18:40:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/791095\/"},"modified":"2026-07-09T18:40:09","modified_gmt":"2026-07-09T18:40:09","slug":"b-capital-and-calpers-acquire-russell-investments-for-2-8b","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/791095\/","title":{"rendered":"B Capital and Calpers Acquire Russell Investments for $2.8B"},"content":{"rendered":"

(Bloomberg) — Russell Investments is being acquired by a group of investors led by the venture firm B Capital Group and California Public Employees\u2019 Retirement System in a bid to ready the 90-year-old asset manager for the AI era.<\/p>\n

The consortium was organized by B Capital, which was co-founded by billionaire Eduardo Saverin and former Bain Capital investor Raj Ganguly. The deal for the $416 billion asset manager is valued at $2.8 billion, according to a person with the knowledge of the matter, who asked not to be named discussing non-public information.<\/p>\n

\u201cWe\u2019ve always believed that the way that people save and invest for retirement can be improved by leveraging AI,\u201d Ganguly said in an interview, declining to comment on the transaction\u2019s details. \u201cBut you can\u2019t remove the human element from it.\u201d<\/p>\n

The acquisition comes at a moment of considerable change in the asset management industry, with firms rushing to combine for scale, expanding into new types of private and alternative assets and investing in technology to reach more clients.<\/p>\n

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In the last two years, Russell Investments has taken in more client money, growing organically by more than 15%, according to the firm. The deal for the Seattle-based company comes roughly a decade after TA Associates Management and Reverence Capital Partners took the asset manager private for $1.15 billion. Back then, it managed roughly $270 billion.<\/p>\n

The transaction is subject to regulatory approval and is expected to close early next year.<\/p>\n

Ganguly said that B Capital had considered investing in the asset management industry for a while after finding that investors are \u201csystematically underserved\u201d in their retirement and personal investing needs. He said B Capital decided against simply backing an upstart or robo-advisory business that didn\u2019t have a longstanding staff and trusted relationships with clients.<\/p>\n

The acquisition is \u201ca compelling opportunity to build a next-generation asset manager,\u201d Calpers\u2019 Deputy Chief Investment Officer Anton Orlich said in a statement.<\/p>\n

Russell Investments, which like many money managers oversees stock and bond funds, has also long focused on advising clients on how to set up broader portfolios of assets and manage taxes. It runs one of the industry largest businesses for \u201coutsourced chief investment officer\u201d mandates. This service offers larger investors a money manager\u2019s advice on how to oversee their portfolios overall.<\/p>\n

Russell Investments regularly works with money managers at external firms to combine investment funds for clients in a sort of \u201copen architecture\u201d model. This structure includes mutual and exchange-traded funds as well as private market investments.<\/p>\n

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\u201cIn many respects, we\u2019re not so much a competitor to the other asset managers as a partner,\u201d said Russell Investments\u2019 Chief Executive Officer Zach Buchwald. \u201cWe look for best of breed managers in every part of the ecosystem and we use them as we build portfolios.\u201d<\/p>\n

The new owners plan to invest more in technology to create more customized portfolios for investors.<\/p>\n

\u201cWhen we think about our bigger aspirations that could really move the needle for the company in terms of the clients that we serve,\u201d said Buchwald, \u201cwe\u2019re going need to think differently around technology and marketing and how to engage with these clients.\u201d<\/p>\n

Russell Investments will be run independently and continue to be led by Buchwald and Chief Investment Officer Kate El-Hillow, according to the firms. Jefferies LLC was sole adviser to B Capital on the acquisition, while Moelis & Company served as lead financial adviser and Bank of America Corp. served as financial adviser to Russell Investments.<\/p>\n","protected":false},"excerpt":{"rendered":"(Bloomberg) — Russell Investments is being acquired by a group of investors led by the venture firm B…\n","protected":false},"author":2,"featured_media":791096,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[45,49,48,133,131,132],"class_list":["post-791095","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-ca","tag-canada","tag-finance","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/791095","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=791095"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/791095\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/791096"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=791095"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=791095"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=791095"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}