The London Stock Exchange Group (LSEG) has agreed to sell asset manager Russell Investments to private equity firm TA Associates for gross proceeds of $1.2bn (£752m).
Reverence Capital Partners partnered with TA Associates and will make a significant minority investment in Russell Investments, according to a statement.
LSEG announced in February this year of its intention to dispose of the asset management business, which specialises in multi-asset solutions, in its entirety.
It confirmed the deal is expected to close with proceeds payable to LSEG in the first half of 2016, with the separation of the Russell Index business from Russell Investments due to be completed in the first quarter of next year.
After this date, the Russell Index business will be “fully integrated” with FTSE.
Len Brennan will remain as president and chief executive of Russell Investments.
Xavier Rolet, chief executive of LSEG, said: “We are very pleased to have agreed the proposed sale of Russell Investments to TA Associates and Reverence Capital, both of whom have strong track records investing in the asset management industry. We look forward to working with them and Russell Investments’ management to deliver a smooth transition of ownership.
“Until completion, LSEG remains firmly committed to Russell Investments, its global customer base, its exemplary client service and its innovative product offering.”
Mr Brennan added: “Russell Investments will maintain its operational independence, and TA Associates and Reverence Capital will provide us with strong financial backing, new strategic insights, and a commitment to help us continue to deliver innovative investment solutions to our global client base.”
Russell Investments has $266bn of assets under management.
