The wealth management industry’s ongoing evolution toward alternative investments has gained significant momentum with Merrill Wealth Management and Bank of America Private Bank’s launch of a comprehensive private market investment program targeting ultra-high-net-worth individuals. This strategic initiative reflects the growing demand among affluent investors for direct access to private market opportunities that were historically reserved for institutional investors and family offices.
Program Structure and Client Requirements
The newly launched “Alts Expanded Access” program represents a significant expansion of investment opportunities for the firms’ most affluent clients. The platform restricts access to individuals with a minimum net worth of $50 million or more, positioning it squarely within the ultra-high-net-worth market segment that has experienced substantial growth in recent years.
Unlike traditional alternative investment offerings that often provide indirect exposure through funds of funds or structured products, Alts Expanded Access enables qualified clients to invest directly as limited partners in specialized funds. This direct investment approach provides clients with unmediated access to fund managers and investment strategies, eliminating intermediate layers that can dilute returns and reduce transparency.
The program encompasses four primary asset classes within the private markets universe: private equity, private credit, venture capital, and real assets. Each of these categories represents distinct investment strategies and risk-return profiles, allowing clients to construct diversified alternative portfolios that align with their specific investment objectives and risk tolerance levels.
Private equity investments through the platform will provide clients access to funds that acquire established companies with the goal of improving operations and generating returns through strategic initiatives, operational improvements, and eventual exits. Private credit opportunities will focus on direct lending to companies, providing potentially attractive risk-adjusted returns in an environment where traditional bank lending has become more constrained.
Venture capital access represents a particularly significant component of the offering, given the substantial wealth creation potential associated with early-stage technology and innovation investments. The program will provide exposure to sectors including technology, healthcare, and sports, reflecting the diverse landscape of venture investment opportunities available to sophisticated investors.
Real assets represent the fourth pillar of the program, encompassing investments in tangible assets such as real estate, infrastructure, natural resources, and commodities. These investments often provide portfolio diversification benefits and potential inflation protection characteristics that complement traditional stock and bond portfolios.
Integration with Existing Investment Architecture
The Alts Expanded Access program builds upon Merrill and Bank of America Private Bank’s existing Alternative Investments platform, which already provides qualified investors with alternative investment options. Rather than replacing existing capabilities, the new program serves as a complementary offering that expands the breadth and depth of private market access available to the firms’ ultra-wealthy clients.
This expansion strategy reflects a sophisticated understanding of client needs across different wealth levels and sophistication degrees. While the existing Alternative Investments platform serves a broader client base with varying alternative investment options, Alts Expanded Access targets the specific requirements of ultra-high-net-worth individuals who seek direct access to institutional-quality private market opportunities.
The program operates through Merrill and Bank of America’s open architecture investment strategy group, which maintains relationships with external asset managers and investment platforms. This approach allows the firms to leverage external expertise while maintaining client relationships and providing integrated wealth management services.
Mark Sutterlin, who serves as head of alternative investments for both Merrill and Bank of America Private Bank, emphasized the program’s focus on partnering with best-in-class alternative asset managers. This partnership approach enables clients to invest directly with leading fund managers while benefiting from the institutional relationships and due diligence capabilities of Bank of America’s investment platform.
The minimum investment amounts for individual funds within the program will vary depending on specific fund requirements and manager preferences. This flexible structure accommodates the diverse investment minimums across different private market strategies while ensuring that clients can construct appropriately diversified alternative portfolios.
Advisory and Portfolio Construction Support
Recognizing the complexity inherent in private market investing, the program incorporates comprehensive advisory support to help clients and their advisors navigate the alternative investment landscape effectively. The firm’s investment solutions group and chief investment office will provide guidance on constructing diversified alternative investment portfolios that align with individual client objectives and overall wealth management strategies.
This advisory component addresses a critical need within the ultra-high-net-worth market, where clients often possess substantial financial resources but may lack the specialized knowledge required to evaluate complex private market opportunities effectively. By providing institutional-quality research and portfolio construction guidance, the program enables clients to make informed investment decisions while leveraging professional expertise.
The integration of advisory services also reflects the broader trend toward comprehensive wealth management solutions that extend beyond simple investment product distribution. Ultra-high-net-worth clients increasingly expect their wealth management providers to serve as strategic partners who can help navigate complex financial decisions and coordinate various aspects of their financial lives.
Portfolio construction guidance becomes particularly important in the private markets context, where investments often involve extended time horizons, limited liquidity, and complex risk characteristics. The firm’s investment professionals can help clients understand how private market investments complement their existing portfolios and contribute to long-term wealth preservation and growth objectives.
Market Context and Industry Trends
The launch of Alts Expanded Access occurs within a broader industry context characterized by increasing client demand for alternative investments and growing recognition among wealth management firms of the importance of private market access. This trend reflects multiple converging factors that have elevated alternative investments from niche portfolio components to essential elements of comprehensive wealth management strategies.
Ultra-high-net-worth individuals have increasingly recognized the potential benefits of private market investments, including the opportunity for enhanced returns, portfolio diversification, and access to investment strategies unavailable through public markets. The performance characteristics of private markets, including potentially reduced correlation with public market volatility, have made these investments particularly attractive during periods of market uncertainty.
The democratization of alternative investments has accelerated significantly in recent years, with technology platforms and regulatory changes enabling broader access to previously exclusive investment opportunities. This trend has created competitive pressure among wealth management firms to expand their alternative investment capabilities or risk losing clients to competitors offering superior private market access.
Major financial institutions including Wells Fargo, Fidelity, and Goldman Sachs have recently expanded their private market investment options, reflecting industry-wide recognition of client demand for these services. The competitive landscape has intensified as firms seek to differentiate their wealth management offerings and capture a greater share of the growing ultra-high-net-worth market.
Client Growth and Market Opportunity
Bank of America’s strategic focus on ultra-high-net-worth clients reflects both the substantial growth potential within this market segment and the firm’s capacity to serve these sophisticated investors effectively. The company’s decision in January to create a specialized group of professionals dedicated to ultra-wealthy investors within its Merrill Wealth Management unit demonstrates the institutional commitment to this market segment.
The firm’s recognition that ultra-wealthy investors require enhanced customization and personalization reflects deeper understanding of client expectations within this market segment. Investors with $10 million or more in net worth typically possess complex financial situations that require sophisticated solutions extending beyond traditional investment management services.
Performance metrics support the strategic focus on ultra-high-net-worth clients, with Merrill’s net new relationships with investors possessing at least $10 million in net worth increasing 13 percent year-over-year during the second quarter of 2025. According to Lindsay Hans, co-head of Merrill Wealth Management, this growth resulted from “wealth creation and transition” occurring broadly across the United States.
This client growth pattern reflects broader economic trends that have created substantial wealth accumulation across various sectors and geographic regions. The expansion of technology companies, private equity activity, real estate appreciation, and entrepreneurial success has generated significant new wealth that requires sophisticated wealth management services.
Competitive Landscape and Strategic Positioning
The alternative investments landscape within wealth management has become increasingly competitive as firms recognize both client demand and the revenue potential associated with private market access. Traditional barriers to private market investing, including high minimum investments and limited access to institutional-quality managers, have begun eroding as wealth management platforms develop more sophisticated alternative investment capabilities.
The integration of private market investments into unified managed accounts (UMAs) and other advisory platforms has simplified client access while enabling wealth managers to provide more comprehensive portfolio management services. This structural evolution has made alternative investments more accessible to a broader range of affluent clients while maintaining the sophisticated investment strategies that characterize institutional private market investing.
Bank of America’s approach through Alts Expanded Access positions the firm competitively by providing direct fund access rather than indirect exposure through fund-of-funds structures or other intermediate vehicles. This direct access approach potentially offers clients superior economics, enhanced transparency, and closer relationships with underlying fund managers.
The program’s focus on best-in-class manager selection and institutional-quality due diligence capabilities reflects the firm’s intent to compete on investment quality rather than simply product breadth. This strategy acknowledges that ultra-high-net-worth clients typically prioritize access to superior investment opportunities over convenience or cost considerations.
Implementation and Operational Considerations
Successfully implementing a comprehensive private market investment program requires substantial operational infrastructure and expertise that extends beyond traditional wealth management capabilities. The complexity of private market investments, including detailed due diligence requirements, ongoing monitoring responsibilities, and client reporting needs, necessitates specialized operational support systems.
The program’s reliance on external manager relationships requires ongoing relationship management and due diligence capabilities that ensure clients receive access to consistently high-quality investment opportunities. This external partnership approach provides scalability and expertise while requiring sophisticated manager selection and monitoring processes.
Client onboarding for private market investments typically involves enhanced suitability assessments, detailed risk disclosures, and comprehensive client education regarding the unique characteristics of alternative investments. These requirements reflect both regulatory obligations and practical considerations related to client satisfaction and long-term relationship management.
The operational complexity of private market investments, including capital call procedures, distribution processing, and performance reporting, requires specialized systems and expertise that complement traditional wealth management operations. Successfully managing these operational requirements while maintaining client service quality represents a significant competitive advantage for firms that execute effectively.
The launch of Alts Expanded Access represents Bank of America’s recognition of the strategic importance of private market access within the ultra-high-net-worth wealth management market. By providing direct fund access, comprehensive advisory support, and institutional-quality manager selection, the program positions the firm competitively within the growing alternative investments landscape while addressing the sophisticated needs of its most affluent clients.
Acknowledgment: This article was written with the help of AI, which also assisted in research, drafting, editing, and formatting this current version.
