TA Associates Buys Russell for $1.15B

The private equity firm agreed to take over Russell Investments and its $266 billion of managed assets from the London Stock Exchange by the first half of 2016.

Private equity firm TA Associates has agreed to buy Russell Investments from the London Stock Exchange Group (LSE) for $1.15 billion in cash.

The deal is expected to close in the first half of 2016, LSE said. The company put Russell’s asset management arm on sale in February, less than a year after purchasing the group for $2.7 billion.

Reverence Capital Partners will also make a “significant minority investment” in Russell, LSE said.

“We are delighted to partner with such an established and highly respected market leader in the investment management industry,” said Todd Crockett, a managing director at TA Associates.

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He added Russell’s investment and implementation operations, including “its orientation to multi-asset and solutions investing” will continue to drive growth.

Leo Brennan, Russell’s president and CEO, said the deal “brings together a global asset manager with two of the most experienced private equity firms with significant asset management experience.”

Russell is expected to maintain its operational independence, with its new owners providing “strong financial backing, new strategic insights, and a commitment to help us continue to deliver innovative investment solutions,” Brennan continued.

LSE said it was committed to Russell until the transaction closes.

Russell’s index business will fully separate from its asset management division by Q1 next year, LSE said, to be “fully integrated” with FTSE.

Brennan will continue to lead Russell Investments, but will step down from LSE’s executive committee on closing.

Related: LSE to Sell Russell’s Investment Management Business & What Is Russell Investments?

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