(pictured: Len Brennan)
Russell Investments senior management have taken “a meaningful equity stake” in the business alongside new owners TA Associates and Reverence Capital Partners, cementing the ongoing leadership in the new arrangement.
The two US private equity firms picked up Russell Investments from the London Stock Exchange for US$1.15 billion last October after fending off bids from a range of suitors including two Chinese operations and the-then Towers Watson.
In a statement announcing the completion of the deal on June 1, TA confirmed Russell management had also acquired an unspecified chunk of the firm.
Len Brennan, the Russell CEO, told clients in a note last week that “the [Russell] management team remains in place and will continue leading day-to-day operations”.
“[And] as part of the transaction, senior management contributed a meaningful minority equity co-investment alongside TA and Reverence Capital and will be an integral shareholder of the firm,” Brennan says in the note.
“… through a number of important global initiatives, we are re-focusing and prioritizing our resources to continue delivering innovative multi-asset solutions and superior client service.”
Todd Crockett, a TA managing director, said the firm, in conjunction with Reverence, would use their combined “industry knowledge, experience and global resources” to boost Russell’s growth.
According to the TA release, as at March 31 this year Russell reported more than US$247 billion under management while advising on assets to the tune of US$2.2 trillion.
Brennan, Crockett and fellow TA managing director, Roger Kafker, along with Reverence managing partner, Milton Berlinski, were appointed to the Russell Investments board after the LSE deal closed out last week.
After months of speculation the LSE confirmed in February 2015 it would hive off the Russell Investments business, acquired as part of US$2.7 billion purchase of the Frank Russell group in 2014.
Since spinning of the investment arm, the LSE merged the Russell index business with its existing FTSE benchmark unit to form FTSE Russell.
– David Chaplin, Investment News NZ