The $200+ billion global asset manager American Century Investments is entering the private markets with the Portland, OR-based 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, American Century CIO.

“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.

Following the US Department of Labor’s approval of the use of alternative investment funds in 401(k) plans three years ago, more alternative investment firms have pushed to provide retail versions of their funds.

Other firms have partnered up for alternative investment expansion, including Vanguard that has been working with HarbourVest since 2020.

American Century expects its new private market investments will attract 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.

Founded in 2011, the 3×5 team 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.