The London Stock Exchange (LSE) Group has agreed to sell Russell Investments asset management business to TA Associates. Russell Investments is the asset-management business of Frank Russell Co. Last year Russell Investments was bought by the LSE for $2.7b.
Last year, the stock exchange operator bought Russell Investments, the owner of the Russell 2000 stock market index, for $2.7 billion. In February, the company put the remaining investment management arm of Russell Investments up for sale in a widely expected move to focus on increasing the size of its index business. The London Stock Exchange Group expects the index business to be completely separated from Russell Investments in the first quarter ahead of the sale. As part of the deal, Reverence Capital Partners will team up with TA Associates and make a “significant minority investment” in Russell Investments. “We are delighted to partner with such an established and highly respected market leader in the investment management industry,” Todd R. Crockett, a managing director at TA Associates, said in a news release.