Schwab broadens retail alternative investment platform for 401k specialists

Charles Schwab has recently announced the availability of its new alternative investments platform, Schwab Alternative Investments Select, to all eligible retail clients with more than $5 million in household assets. This offering caters to high net-worth (HNW) and ultra-high net-worth (UHNW) clients who wish to diversify their investments with non-traditional approaches and access private markets to achieve their portfolio goals. Initially launched in October 2024 to a limited clientele group, this platform is now accessible to all eligible Schwab retail clients, including those enrolled in Schwab Wealth Advisory.

Head of Schwab Wealth & Advice Solutions at Charles Schwab, Neesha Hathi, stresses the firm’s commitment to expanding capabilities to address evolving client needs, emphasizing the launch of Schwab Alternative Investments Select as a step towards offering eligible retail clients access to a growing alternative investments platform complemented by specialized expertise and support.

The launch of this alternative investment platform responds to an increasing demand for such investments. A recent survey conducted by Schwab among its HNW clients revealed that over 50% of participants anticipate allocating at least 5% of their portfolio to alternative investments within the next three years. The broad selection of third-party alternative investment funds offered by Schwab’s platform covers various asset classes like private equity, hedge funds, private credit, and private real estate. These funds undergo rigorous due diligence reviews, ensuring the quality and suitability of investment options.

As Schwab expands its platform, it plans to introduce additional asset classes, such as exchange funds, and enhance the variety of funds within each category. Supported by iCapital’s cutting-edge technology, the enrollment and investment experience for clients is optimized. Moreover, clients benefit from the expertise of Schwab Alternative Investment Consultants, who assist them in selecting alternative investment options for their portfolios, educate them on different alternatives, and provide specialized support.

Clients partaking in Schwab Alternative Investments Select also have the advantage of working with their dedicated financial consultant, wealth consultant, or wealth advisor to receive guidance and support in achieving their broader investment portfolio and wealth management objectives. This new platform bolsters Schwab’s ongoing commitment to providing comprehensive wealth management solutions catering to the needs of its growing community of HNW and UHNW clients, with a focus on alternative investments expertise and personalized support.