Russell Investments is getting new owners. An investor consortium led by B Capital, a global multi-stage investment firm, has agreed to acquire the asset manager from TA Associates and Reverence Capital Partners. The group also includes the California Public Employees’ Retirement System (CalPERS), according to a Thursday press release.
Key Takeaways:
- B Capital is leading a buyout of Russell Investments, with CalPERS among the investors involved.
- Russell’s ETF suite, including REMG and RUSC, is posting double-digit gains in 2026.
- The deal, backed by a tech-focused investor group, is set to close in early 2027.
The deal arrives as several Russell ETFs post some of their strongest numbers of the year. In fact, the firm’s emerging markets and small-cap funds have posted double-digit gains year to date.
See more: AI & “Ex-China” Rewriting the Emerging Markets ETF Playbook
Russell Investments oversees $416 billion in global assets under management as of June 30, according to the company. The firm has posted organic growth of more than 15% over the past two years.
“Helping people build long-term financial security is one of the defining challenges of our time,” said Zach Buchwald, chief executive officer of Russell Investments. He added that Russell and its new partners share a long-term view of investing that they believe can improve people’s lives.
Eduardo Saverin and Raj Ganguly, co-founders and co-chief executive officers of B Capital, said the future of asset management sits at the intersection of expertise, service, and innovation, according to the release. They also pointed to Russell’s history in indexing and smart beta as a foundation to build on.
Anton Orlich, deputy chief investment officer at CalPERS, said the pension system sees the partnership as an opportunity to help build a next-generation asset manager, according to the release.
Russell’s ETF Lineup Already Delivering
The ownership change centers on long-term capital and technology. However, Russell’s existing ETF business offers an early look at where that investment could flow.
Among the standouts, the Russell Investments Emerging Markets Equity ETF (REMG) has climbed 22.3% year to date and returned 39.5% over the past year, according to ETF Database. The fund holds $107 million in total assets.
Small-caps have performed similarly well. The Russell Investments U.S. Small Cap Equity ETF (RUSC) is up 21.4% year to date. It has pulled in $16.75 million in fund flows over the past four weeks, according to ETF Database.
By size, the Russell Investments Global Equity ETF (RGLO) remains the biggest fund in the suite, with $341 million in total assets and $48.5 million in year-to-date inflows, according to ETF Database.
B Capital’s other holdings include Perplexity, an AI-powered search engine, and Fervo Energy, a geothermal power developer, according to the company. Russell expects the deal to close in the first quarter of 2027, subject to regulatory approval.
For more news, information, and analysis, visit the Equity ETF Content Hub.
Originally posted on ETF Trends
A message from Advisor Perspectives and VettaFi: Discover something new! Click here to register for our upcoming webcasts.
More Innovative ETFs Topics >
