Charles Schwab Launches Alts Platform for All Eligible Retail Clients
Charles Schwab has now launched Schwab Alternative Investments Select for all eligible retail clients with more than $5 million in household assets at Schwab.
The alternative investments platform expands on Schwab’s comprehensive wealth management capabilities that serve high net worth, or HNW, and ultra-high net worth, i.e., UHNW clients who are increasingly seeking to supplement their investments with non-traditional approaches and access to private markets to meet their portfolio goals.
The platform was initially rolled out to a smaller group of clients beginning in October 2024 and is now available to all eligible Schwab retail clients, including those enrolled in Schwab Wealth Advisory.
“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,” said Neesha Hathi, head of Schwab Wealth & Advice Solutions at Charles Schwab. “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.”
The new offer comes as demand for alternative investments continues. The firm said a recent survey of Schwab’s HNW clients shows that more than half expect to have at least 5% of their portfolio allocated to alternative investments over the next three years.
The offer includes a curated shelf of third-party alternative investment funds across select asset classes including private equity, hedge funds, private credit, and private real estate. The funds undergo thorough ongoing due diligence reviews, according to Schwab. As it continues to expand the platform, the firm will add additional asset classes, including exchange funds, and broaden the menu of funds in each category.
The offer is supported by iCapital’s industry leading technology, which will digitize and streamline the enrollment and investment experience for clients.
According to Schwab, clients who invest through the platform will also have access to a dedicated and experienced team of consultants who will work with clients on alternative investment recommendations for their portfolios and provide education and specialized support.
Education was a key theme of a conversation between registered investment advisers at ADISA’s Spring Conference earlier this month. Advisers there said they spend ample time educating advisers and clients about specific alternative investment funds and how alternatives investments can be part of the solution when it comes to client goals.
Schwab that its clients participating on the platform will also continue to work with their financial consultant, wealth consultant or wealth adviser, each of whom provide guidance and support on investment portfolios and wealth management goals.
Tailored Solutions and Experiences for HNW Clients
Schwab Alternative Investments Select enhances the range of specialized services and solutions designed to meet the needs of Schwab’s HNW and UHNW clients, who are among the fastest-growing client segments at Schwab, representing more than two-thirds of the firm’s total retail client assets today.
To deliver on a differentiated client experience, Schwab automatically enrolls retail HNW clients at Schwab in a branded client experience. Retail clients with more than $1 million in assets at Schwab are automatically enrolled in Schwab Private Client Services, and clients with more than $10 million are enrolled in Schwab Private Wealth Services. Both programs consist of a complimentary suite of benefit, according to the firm, providing service, pricing advantages, and other rewards to meet the unique needs of these wealthy clients.
In addition to the launch of Schwab Alternative Investments Select for eligible retail clients, Schwab has provided services and support for alternative investment solutions for independent adviser clients for many years and continues to invest in enhancing its capabilities to support advisers’ use of alternative investments. Over 37% of advisers who custody at Schwab leverage one of the firm’s alternative investments platforms, including Schwab Alternative Investment OneSource, the fastest-growing platform among the firm’s RIA clients.
A total of $58 billion in alternative assets are custodied at Schwab by advisers.
The Charles Schwab Corporation (NYSE: SCHW) is a provider of financial services, with 36.9 million active brokerage accounts, 5.5 million workplace plan participant accounts, 2 million banking accounts, and $10.28 trillion in client assets as of Feb. 28, 2025.
