Kansas City-based global asset manager American Century Investments is entering the private markets space with the impact venture capital team from 3×5 Partners.
The new private impact investment team will be led by 3×5 Partners’ managing partners Nicholas Walrod, Tony Arnerich and Joe Biller, reporting to Victor Zhang, CIO of the $200 billion American Century. The new team has more than a decade’s experience in the private impact sector.
“We are always thinking about how we can best serve clients and looking for innovative solutions to their investment needs,” said Jonathan Thomas, president and CEO of American Century. “In adding the 3×5 Partners team, we will grow our capabilities for our clients across the globe who are increasingly allocating to private markets, allowing us to be aa more complete asset manager for our clients.”
The move comes as more alternative investment firms have sought to offer retail versions of their funds following the U.S. Department of Labor approval of use of alternative investment funds in 401(k) plans three years ago.
Other firms have partnered up for alternative investment expansion, including Vanguard that has been working with HarbourVest since 2020.
“For more than 60 years, we have expanded our investment capabilities to offer clients solutions that help build their optimism and trust in their financial futures — from honing actively managed funds to our most recent growth and success in ETFs,” said American Century CIO Zhang. “And we have expanded who we serve — from individual investors to institutional investors and financial advisors. Expanding into private markets will be an exciting progression of our investment capabilities as we help our clients reach their financial goals.”
American Century said it expects its new private market investment capabilities to be of the most interest to its global institutional clients, as well as clients of high-net-worth financial professionals. The venture capital team at 3×5 will benefit from the mutual fund firm’s distribution, investment and operations infrastructure.
The 3×5 team came together in 2011 and has been investing in companies that are delivering advancements in energy, food, water, shelter, health care, sanitation and climate and environmental sustainability. The team has experience managing jointly and individually more than $500 million across health care and climate solutions sectors.
The deal is expected to close in the third quarter. RBC Capital Markets provided strategic advice in this transaction.
