GLOBAL – Russell Investment Group is to buy global private equity fund-of-funds specialist Pantheon for an undisclosed sum, with Russell hailing the deal as an "ideal strategic fit".

Under the deal Pantheon’s offering would be incorporated into Russell's global investment solutions. The firms said the deal “demonstrates the growing global appetite for private equity funds-of-funds”.

Pantheon will become Russell's solution for private equity services. It would provide “an enhanced and specialized capability” within Russell’s range.

Russell, which has its own private equity fund-of-funds business, says it will integrate services with Pantheon to deepen its private equity capabilities as part of a complete range of multi-manager investment solutions.

“Pantheon currently manages seven billion dollars of private equity fund-of-funds assets,” the companies said in a joint release.

"We are thrilled to have found such an ideal strategic fit between Russell and Pantheon," said Hal Strong, managing director of alternative investments at Russell.

"This agreement represents our increased commitment to private equity, and we absolutely believe in Pantheon as the premier provider of this specialised service.”

He said the deal will let Russell's private equity business be organized and managed under Pantheon's leadership.

"This relationship marks the beginning of a new and exciting phase in Pantheon's development at a time when we see tremendous potential in private equity," said Rhoddy Swire, founder and senior partner of Pantheon.

The transaction will be completed once approval is received. The Pantheon name will remain – as will its management.

Russell was advised by Goldman Sachs and Debevoise & Plimpton while Pantheon was advised by Hawkpoint Partners and S J Berwin.