B Capital, Calpers Buy Russell Investments for $2.8 Billion to Build AI-Ready Asset Manager
Updated
Updated · Wealth Management · Jul 9
B Capital, Calpers Buy Russell Investments for $2.8 Billion to Build AI-Ready Asset Manager
3 articles · Updated · Wealth Management · Jul 9
Summary
$2.8 billion values Russell Investments in a deal led by B Capital and Calpers, with the $416 billion asset manager set to keep operating independently under CEO Zach Buchwald and CIO Kate El-Hillow.
B Capital said it targeted Russell to use AI to improve retirement and personal investing without losing human advice, while Calpers called it a chance to build a next-generation asset manager.
Russell brings a 90-year-old franchise that has grown organically by more than 15% over the past two years, plus a large outsourced chief investment officer business and an open-architecture model spanning public and private assets.
The acquisition comes as asset managers chase scale, alternatives and technology; Russell was taken private about a decade ago for $1.15 billion when it managed roughly $270 billion.
Regulatory approval is still required, and the transaction is expected to close early next year.
As AI manages portfolios, what is the real role left for the 'irreplaceable' human investment manager?
Can a $2.8B AI acquisition reverse Calpers' history of underperformance and secure public pensions?
Russell Investments Acquired for $2.8 Billion: New Ownership, AI Integration, and Future Growth Strategy
Overview
On July 9, 2026, Russell Investments was acquired for $2.8 billion by a consortium led by B Capital and CalPERS, marking a pivotal moment and new strategic direction for the firm. With fresh financial backing, Russell Investments is set to embark on an ambitious expansion strategy, focusing on enhancing its outsourced chief investment officer (OCIO) business, strengthening portfolio implementation, and developing its self-directed investing platform. These strategic initiatives aim to drive substantial growth and innovation, positioning Russell Investments for a new era of development and a stronger market presence as a next-generation asset manager.