Merrill Wealth Management and Bank of America Private Bank Launch Alts Expanded Access Program

Strategic Insights -

The Alts Expanded Access Program aims to provide ultra-high-net-worth (UHNW) clients with access to institutional-grade private market funds, offering a more diversified portfolio allocation. This move reflects the growing demand for non-traditional investments, particularly among young high-net-worth investors. According to a 2024 Bank of America Private Bank Study, 93% of high-net-worth individuals plan to increase their allocation to alternatives in the coming years. The program's selective access to specialized opportunities in emerging themes, niche strategies, and evolving sectors is designed to meet the evolving needs of UHNW clients with increasingly complex financial goals.

Key Takeaways:

  • The Alts Expanded Access Program is tailored to ultra-high-net-worth (UHNW) clients with a net worth of $50 million or more, offering them access to institutional-grade private market funds.
  • The program is designed to complement the investment options available through Merrill's and Bank of America Private Bank's core platform, allowing clients to build an expanded allocation to alternatives as part of a diversified portfolio.
  • Key features of the program include selective access to specialized opportunities, supported recommendation from clients' advisors, and client-directed due diligence and investment decisions.
  • The program builds on the successful launch of other UHNW capabilities, such as the dual-contract investment advisory program that has grown to over $60 billion in client assets in under three years.
  • Bank of America Private Bank's 2024 study found that 17% of high-net-worth Americans currently allocate to alternatives, with 93% planning to increase their allocation in the coming years.
  • The Alts Expanded Access Program is part of Bank of America's broader commitment to meet the evolving needs of UHNW clients with increasingly complex financial goals.

Statistics:

  • 17% allocation to alternatives among high-net-worth Americans (as of 2024).
  • 93% of high-net-worth individuals plan to increase their allocation to alternatives in the coming years (as of 2024).
  • Over $60 billion in client assets for Bank of America's dual-contract investment advisory program in under three years.
  • The Alts Expanded Access Program is available to ultra-high-net-worth (UHNW) clients with a net worth of $50 million or more.

Sources:

  • "2024 Bank of America Private Bank Study of Wealthy Americans"
  • "Bank of America Private Bank"
  • "Merrill Lynch, Pierce, Fenner & Smith Incorporated" (also referred to as "MLPF&S" or "Merrill")
  • "Bank of America Corporation"