PE expected to bid for Russell Investments

The London Stock Exchange Group (LSE) said Thursday it concluded its review of the asset management arm of Frank Russell Co and had received “a number of expressions of interest.”

“A sale process of the business will now commence,” LSE said in the statement.

J.P. Morgan and Goldman Sachs are advising on the process. Barclays is the corporate broker, LSE said.

The asset management unit had $275.09 billion in assets under management as of Sept. 30. Russell Investments produces $125 million EBITDA and is expected to fetch from $1.3 billion to $1.4 billion, one private equity executive said.

Interested parties could include TA Associates, Hellman & FriedmanGTCR, Lovell Minnick Partners and Crestview Partners, sources said. Larger PE firms, like The Carlyle Group or Blackstone Group, may also be interested.

Last year, Northwestern Mutual Life Insurance Co put Frank Russell, including the investment management and index businesses, up for sale. The Russell sale was limited to large buyout shops, Buyouts reported. LSE, which mainly wanted Russell’s large index business, in June beat out a handful of PE firms and bidders such as the Canadian Imperial Bank of Commerce to buy the company, Reuters said. LSE completed its $2.7 billion buy of Frank Russell in December.

Executives for TA, GTCR, Hellman & Friedman, Blackstone and Crestview declined to comment.