Fidelity and T. Rowe Price are taking different routes to private investments. More venture capital rounds are looking to “crossover” investors like them, that normally deal in public markets. Both firms have waded into venture capital. T. Rowe Price Chief Executive Bill Stromberg said last year that the firm is keeping an eye on competitors making forays into alternatives.

“You’re seeing that more and more, and I wouldn’t rule that out for T. Rowe Price,” Stromberg said.

The moves come as the Securities and Exchange Commission is considering ways to allow mom-and-pop investors more access to private investments, which have historically been largely limited to the super rich, sovereign wealth funds and pension funds. In December, the SEC proposed changing some criteria that determine who’s sophisticated enough to invest in private funds.

Vanguard’s fund, which it’s partnered with HarbourVest Partners LLC to manage, will only be available to institutional investors at first, though it will look to open to other investors later.

“Institutions for many years have included private equity as an important part of their portfolios,” said John Toomey, managing director at HarbourVest. “I don’t see why those benefits couldn’t be made available to other investors.”

What Bloomberg Intelligence Says:

“Vanguard’s partnership with private equity firm HarbourVest Partners could further disrupt the financial-advice business by expanding offerings from the company’s low-cost $161 billion wealth-management arm. A major-league adviser needs access to private capital and alternative investments, especially as public markets stagnate.”

-Eric Balchunas, BI Senior ETF Analyst

This article was provided by Bloomberg News.

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