Schwab Introduces Alternative Investments Platform for Eligible Retail Investors
New offer builds on Schwab’s broad array of wealth, advice and investment management solutions to meet the evolving needs of high net worth and ultra-high net worth clients.
WESTLAKE, Texas–(BUSINESS WIRE)–
Charles Schwab today announced that Schwab Alternative Investments Select, its new alternative investments platform, is now available to all eligible retail clients with more than $5 million in household assets at Schwab.
The new offer expands on Schwab’s comprehensive wealth management capabilities that serve high net worth (HNW) and ultra-high net worth (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 offer 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™, Schwab’s premier 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,” 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. A recent survey1 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. As Schwab 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.
Clients who invest through Schwab Alternative Investments Select will also have access to a dedicated and experienced team of Schwab Alternative Investment Consultants, who will work with clients on alternative investment recommendations for their portfolios and provide education and specialized support. Clients will also continue to work with their Financial Consultant, Wealth Consultant or Wealth Advisor who provide guidance and support for their broader investment portfolio 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 benefits providing dedicated and experienced service, pricing advantages, and other rewards to meet the unique needs of these wealthy clients.
For affluent clients seeking advisory services, Schwab also offers a range of investment management solutions to help clients meet goals ranging from steady income or diversification to more customized investing, including Schwab Wealth Advisory™, Schwab Personalized Indexing™, and Schwab Advisor Network®, the referral network serving investors throughout the nation 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.”
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 advisor clients for many years and continues to invest in enhancing its capabilities to support advisors’ use of alternative investments. Over 37% of advisors 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 advisors.
About Charles Schwab
At Charles Schwab we believe in the power of investing to help individuals create a better tomorrow. We have a history of challenging the status quo in our industry, innovating in ways that benefit investors and the advisors and employers who serve them, and championing our clients’ goals with passion and integrity.
The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 36.9 million active brokerage accounts, 5.5 million workplace plan participant accounts, 2.0 million banking accounts, and $10.28 trillion in client assets as of February 28, 2025. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, https://www.sipc.org), and its affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at https://www.aboutschwab.com.
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Disclosures
1A Survey of 150 HNW clients at Charles Schwab and was fielded from January 8-17, 2025.
To be eligible for Alternative Investments, certain qualifications must be met including having at least $5M in household assets held at Schwab and having been a Schwab client for at least 30 days. Investing in alternative investments is speculative, not suitable for all clients, and generally intended for experienced and sophisticated investors who are willing and able to bear the high economic risks of the investment. Investors should obtain and carefully read the related prospectus or offering memorandum, which will contain the information needed to help evaluate the potential investment and provide important disclosures regarding risks, fees and expenses.
Diversification strategies do not ensure a profit and do not protect against losses in declining markets.
Investing in alternative investments is speculative, not suitable for all clients, and generally intended for experienced and sophisticated investors who are willing and able to bear the high economic risks of the investment. Investors should obtain and carefully read the related prospectus or offering memorandum, which will contain the information needed to help evaluate the potential investment and provide important disclosures regarding risks, fees and expenses.
Alternative investments, including hedge funds and funds that invest in alternative investments, often employ leveraging and other speculative practices that increase an investor’s risk of loss to include complete loss of investment, often charge high fees, and can be highly illiquid and volatile. Alternative investments may lack diversification, involve complex tax structures and have delays in reporting important tax information. Alternative investments that are closed end funds registered under 1933 or 1940 act would be subject to the same regulatory requirements as mutual funds. Other registered and unregistered funds are not subject to the same regulatory requirements as mutual funds.
Investors should carefully consider the investment objectives, risks, charges, and expenses before investing. The prospectus or offering memorandum contains this and other information. It should be read carefully before investing. This is not an offer of, or a solicitation to subscribe to or purchase, securities.
Schwab Alternative Investment OneSource® does not provide investment advisors or their clients advice about potential investment in participating funds. It is each investment advisor’s responsibility to determine the suitability of such an investment for his or her clients. Alternative investments such as the participating funds are risky, and an advisor’s clients may lose their entire investment in a fund.
Schwab receives remuneration from fund companies participating in the Schwab Alternative Investment OneSource platform for recordkeeping, shareholder services, and other administrative services.
This information provided here is for general informational purposes only, and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, you should consult with a qualified tax advisor, CPA, Financial Planner, or Investment Manager.
Investing involves risk, including loss of principal.
SIPC does not protect investment contracts (such as limited partnerships) that are not registered with the U.S. Securities and Exchange Commission under the Securities Act of 1933.
Investment and Insurance Products Are: Not FDIC Insured • Not Insured by Any Federal Government Agency • Not a Deposit or Other Obligation of, or Guaranteed by, the Bank of any of its Affiliates • Subject to Investment Risks, Including Possible Loss of Principal Amount Invested
(0425-FCV9)
View source version on businesswire.com: https://www.businesswire.com/news/home/20250410571248/en/
Hibah Shariff
Charles Schwab
415-667-0507
[email protected]
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