American Century Investments^®, a more than $200 billion* global asset manager, announced its planned entrance into the rapidly growing private markets with the impact venture capital team from 3×5 Partners joining American Century to lead its new private impact investment capabilities. Nicholas Walrod, Tony Arnerich, and Joe Biller, managing partners of 3×5 Partners, will lead the new private impact investment team and report to Victor Zhang, chief investment officer for American Century. The new team has more than 10 years’ experience in private impact investments and will bring that experience to American Century.

“We are always thinking about how we can best serve clients and looking for innovative solutions to their investment needs. 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 a more complete asset manager for our clients,” said Jonathan Thomas, president and CEO of American Century.

American Century expects its new private market investment capabilities to most interest its global institutional clients, as well as clients of high-net-worth financial professionals. The venture capital team coming from 3×5 Partners expects to benefit from American Century’s distribution, investment, and operations infrastructure while continuing to operate out of Portland, Oregon. The transaction is scheduled to be completed in the third quarter, subject to closing conditions being met.

“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. 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,” said Zhang.

3×5 Partners’ History of Performance

Founded in 2011, 3×5 Partners has been seeking out companies that are delivering advancements in energy, food, water, shelter, health care, sanitation, and climate and environmental sustainability. The team has experience managing, individually or jointly, more than $500 million in the health care and climate solutions sectors.

“Our commitment to delivering returns for clients while doing good is part of the strong alignment of purpose with American Century. American Century’s impact on global health makes it a natural and inspiring fit for us to continue our work,” said Walrod.

Beyond its integration of financially material, sustainability-related factors into many of its investment processes in order to help deliver better long-term, risk-adjusted returns for its clients, American Century has made an impact on global health since 2000, when its founders bestowed an equity stake in the firm to the Stowers Institute for Medical Research. Since then, the Stowers Institute has received nearly $2 billion from this unique ownership structure.

RBC Capital Markets provided strategic advice in this transaction.

Source: American Century