American Century® to Expand into $10T Private Markets
Transaction will bring 3x5 Partners investment team to American Century to lead its entry into private markets
KANSAS CITY, MO
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 3x5 Partners joining American Century to lead its new private impact investment capabilities. Nicholas Walrod, Tony Arnerich, and Joe Biller, managing partners of 3x5 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 3x5 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 3x5 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.
3x5 Partners' History of Performance
Founded in 2011, 3x5 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.
About American Century Investments
Who We Are
American Century Investments is a leading global asset manager focused on delivering investment results and building long-term client relationships while supporting breakthrough medical research.
Founded in 1958, American Century Investments' 1,400 employees serve financial professionals, institutions, corporations and individual investors from offices in Kansas City, Missouri; New York; Los Angeles; Santa Clara, California; Portland, Oregon; London; Frankfurt, Germany; Hong Kong; and Sydney.
Jonathan S. Thomas is president and chief executive officer, and Victor Zhang serves as chief investment officer.
Delivering investment results to clients enables American Century Investments to distribute over 40% of its dividends to the Stowers Institute for Medical Research, a 500-person, nonprofit basic biomedical research organization. The Institute owns more than 40% of American Century Investments and has received dividend payments of more than $2 billion since 2000.
Assets under supervision as of 5/31/23.
©2024 American Century Proprietary Holdings Inc. All rights reserved.
Many of American Century’s investment strategies incorporate sustainability factors, using environmental, social, and/or governance (ESG) data, into their investment processes in addition to traditional financial analysis. However, when doing so, the portfolio managers may not consider sustainability-related factors with respect to every investment decision and, even when such factors are considered, they may conclude that other attributes of an investment outweigh sustainability factors when making decisions for the portfolio. The incorporation of sustainability factors may limit the investment opportunities available to a portfolio, and the portfolio may or may not outperform those investment strategies that do not incorporate sustainability factors. ESG data used by the portfolio managers often lacks standardization, consistency, and transparency, and for certain companies such data may not be available, complete, or accurate.