Russell Investments' money management and consultant business is set to be sold to TA Associates for $1.15 billion in cash.
The London Stock Exchange Group announced in a statement Thursday that it agreed to the proposed sale of the consultant and money manager, which has $266 billion in assets under management. The statement said Reverence Capital Partners partnered with TA Associates and will make “a significant minority investment in Russell Investments.”
LSEG said the transaction is expected to close in the first half of 2016; $1 billion will be paid to LSEG in cash on completion, with the $150 million balance paid in four equal cash installments annually, starting in December 2017.
LSEG said it remains committed to maintaining client service and fund performance at Russell Investments until the transaction is completed, and will also “continue to seek to ensure management and employee continuity and to provide strong support for growth and innovation in the business, working closely with TA Associates and Reverence Capital wherever possible.”