Northwestern Mutual today announced an agreement to sell the company's subsidiary company, Russell Investments, to the London Stock Exchange Group plc (LSEG) for $2.7 billion. The sale will be finalized later this year, pending regulatory and LSEG shareholder approvals and satisfaction of other closing conditions.
Russell is a global investment services firm that oversees almost $260 billion in assets, primarily for large, institutional investors such as pension funds. The firm also maintains well-respected stock indices such as the Russell 2000. Russell mutual funds are available to retail investors.
"The proceeds from the sale will cap off what has proven to be a good investment for Northwestern Mutual," said John Schlifske, chairman and CEO of Northwestern Mutual. "When you look at the income it produced over all that time and this sale price you see a great example of how we build value for policyowners of our mutual company."
Northwestern Mutual manages more than $184 billion in invested assets as part of its general account investment portfolio, which backs its insurance and annuity products.
Goldman, Sachs & Co. and J.P. Morgan Securities LLC acted as financial advisors to Northwestern Mutual on this transaction.