Outsourced CIO firm Russell Investments and Hamilton Lane are teaming up to broaden access to private market access.
The newly announced deal will see Hamilton Lane not only taking a $90 million stake in Russell Investments but also offering the Russell clients access to Hamilton Lane’s offerings, data-driven research and technology.
“Given increasing market complexities and rising need around financial security, fiduciaries are looking for partners that can seamlessly provide tailored, differentiated investment solutions,” said Michelle Seitz, chairman and CEO of Russell Investments. “This partnership demonstrates our 85-year fiduciary commitment to provide comprehensive, leading-edge investment solutions and risk management to our clients. The resulting one-stop access to extensive private and public markets capabilities is, I believe, unmatched in our industry today.”
The Seattle-based firm has $2.5 trillion in assets under advisement and $323.7 billion under management. Russell Investments’ clients will benefit from access to Hamilton Lane’s global investment platform and deep expertise across all private markets strategies and sectors, as well as access to Hamilton Lane’s private markets risk and portfolio construction tools.
Seitz added that institutional investors are increasingly focused on their own core business competencies and want more comprehensive relationships with strategic investment partners. The market potential is large for Russell. The firm cited McKinsey & Company research reports that found 76% of asset owners with assets up to $10 billion have not outsourced their investment activities.
“At Hamilton Lane, we are committed to providing private markets access to a broader group of investors around the world, and this partnership is another exciting development in support of that objective,” said Mario Giannini, CEO of Hamilton Lane. “We believe our investment capabilities and expertise, together with Russell Investments’ strong outsourced investment solutions, will enable enhanced and integrated access to the global private markets for Russell Investments’ clients around the world.”
Hamilton Lane has approximately $657 billion in assets under management and supervision, composed of approximately $76 billion in discretionary assets and approximately $581 billion in advisory assets.
