US-based private equity firm TA Associates has concluded the acquisition of Frank Russell Company’s asset management arm Russell Investments from London Stock Exchange Group in a $1.15bn deal.
Financial services-focused investment firm Reverence Capital Partners teamed up with TA Associates and made a significant minority investment in Russell Investments.
At the same time, Russell Investments’ management along with TA and Reverence invested in the business to buy a meaningful equity stake.
Reverence Capital managing partner Milton Berlinski, Russell Investments CEO Len Brennan, and TA Associates managing directors Todd Crockett and Roger Kafker have now become members of Russell Investments’ board of directors.
While announcing the deal in October 2015, TA Associates said that it will pay $1bn in cash on completion, while the remaining $150m will be paid annually in four equal cash instalments starting from December 2017.
"We are very pleased to complete the acquisition of Russell Investments and, together with Reverence Capital, begin our new relationship with this established and highly respected market leader. We will utilize our industry knowledge, experience and global resources to help accelerate Russell Investments’ growth," Crockett said.
"We look forward to a close collaboration with TA Associates and the leadership team at Russell Investments, helping to drive the firm’s continued long-term success," Berlinski added.
Seattle-based Russell Investments focuses on delivering an outcome-oriented, multi-asset solutions approach to clients across the globe and oversees over $247bn in assets. The firm offers implementation capabilities including transition management, currency management, overlay services, commission management and agency trading.