Charles Schwab is making its alternative investments platform, Schwab Alternative Investments Select, available to retail clients with more than $5 million in household assets.
The offer opens up wealth management services that have been available to Schwab’s high net worth and ultra-high net worth clients, who increasingly supplement their investments with non-traditional approaches and access to private markets. The service, initially offered to a smaller group of clients in October 2024, is now available to all eligible Schwab retail clients, including those enrolled in Schwab Wealth Advisory, Schwab’s top wealth management offer.
“As our large and growing HNW and UHNW client base continues to turn to Schwab to meet a broad array of wealth, advice and investing needs, we are committed to continuing to expand our capabilities to serve their evolving needs and preferences,” Neesha Hathi, Head of Schwab Wealth & Advice Solutions, said in a news release. “With the launch of Schwab Alternative Investments Select, we’re excited to now offer eligible retail clients access to a growing alternative investments platform, along with the specialized expertise, service and support we know they deeply value.”
Demand for alternative investments continues, Schwab reported. The company found during a recent survey that more than half of its HNW clients expect to allocate at least 5% of their portfolio to alternative investments over the next three years.
Schwab’s new offer includes a curated collection of third-party alternative investment funds across asset classes including private equity, hedge funds, private credit and private real estate. The funds undergo thorough ongoing due diligence reviews, Schwab reported. The firm plans to add more asset classes, including exchange funds, and increase the list of funds in each category.
The offer is supported by technology from iCapital, which will digitize clients’ enrollment and investment experience.
Those who invest through Schwab Alternative Investments Select will also have access to a team of Schwab alternative investment consultants, who will recommend alternative investments and provide education and support. Clients’ financial consultant, wealth consultant or wealth advisor will continue to provide guidance and support for their broader investment portfolio and wealth management goals.
HNW and UHNW clients are among Schwab’s fastest-growing client segments, representing more than two-thirds of the firm’s total retail client assets.
Schwab enrolls retail HNW clients at Schwab in a branded client experience. Schwab retail clients with over $1 million in assets are placed in Schwab Private Client Services, and those with more than $10 million are enrolled in Schwab Private Wealth Services.
Schwab also offers a range of investment management solutions to help affluent clients attain goals including steady income, diversification and customized investing. The services include Schwab Wealth Advisory, Schwab Personalized Indexing, and Schwab Advisor Network, a referral network serving investors with referrals to independent Registered Investment Advisors.
“Schwab serves more than a million multimillionaire investors, representing over $3 trillion in assets at Schwab, and we are proud that our breadth of products and services meet the specific needs of our wealthier clients, while we also continue to serve investors at all asset levels and at every stage of their investing journey,” said Jonathan Craig, Head of Investor Services at Charles Schwab. “We remain committed to seeing through all our clients’ eyes, with a continued focus on delivering low costs and great value, products and experiences that make investing easy and accessible, and exceptional client service.”
Schwab reported that it has provided services and support for alternative investment solutions for independent advisor clients for many years and continues to invest in enhancing its capabilities to support advisors’ use of alternative investments. Schwab advisors custody $58 billion in alternative assets.
