US Edition 
London Stock Exchange sells Russell Investments for $1.2bn
Exchange completes sale to US investment group TA Associates after China deal unravels
The London Stock Exchange Group is to sell the asset management arm of the Frank Russell investment firm it bought last year.
The company behind London’s stock exchange, clearing houses and financial indices has agreed to sell Russell Investments for $1.15bn (£752m) in cash to US private equity group TA Associates.
LSE, which put up Russell Investments on the block in February, said it would receive net proceeds of about $920m from the sale after tax and expenses.
Xavier Rolet, chief executive of LSE, said he was “very pleased” with the deal.
“We look forward to working with them [TA] and Russell Investments’ management to deliver a smooth transition of ownership.
“Until completion, LSE remains firmly committed to Russell Investments, its global customer base, its exemplary client service and its innovative product offering.”
CITIC - one of the biggest brokerage firms in China - was reportedly the frontrunner to take over Russell Investments, before a stock market rout in the Far Eastern country and an alleged investigation into CITC by the government hit it hard.
LSE, which was advised on the sale of Russell Investments by JP Morgan and Goldman Sachs, recently reported a 90pc rise in half-year revenues.
Revenues of £1.17bn were up 9pc based on underlying performance, while adjusted pre-tax profits climbed by 20pc to £205.2m.
Russell’s investment business generated revenues of £498m.
LSE shares dropped 0.8pc to £24.51 before news of the sale emerged.
The London Stock Exchange recently reported a 90pc rise in half-year revenues, helped by its newly acquired Russell business.
Revenues of £1.17bn were up 9pc based on underlying performance, while adjusted pre-tax profits climbed by 20pc to £205.2m.