Inside BofA’s $50 Million Membership: The Alts Expanded Entry Program for UHNW Buyers

BofA and Merrill Debut Non-public Market Program for Wealthiest Purchasers: Financial institution of America (BofA) and its Merrill Wealth Administration arm are increasing their personal market footprint with a program aimed squarely on the rarefied tier of buyers—these with a internet value of $50 million or extra. Dubbed the Alts Expanded Entry Program, the initiative launches in fall 2025 and displays the growing demand from the ultra-high-net-worth (UHNW) neighborhood for direct entry to institutional-grade personal market alternatives.

For CEOs, household places of work, and world buyers managing multigenerational wealth, the sign is evident: the world’s largest personal financial institution is betting that options—personal fairness, personal credit score, actual property, and rising area of interest methods—have gotten a core part of ultra-wealthy portfolios.

The shift from public to non-public wealth

The launch comes towards a broader structural shift in capital markets. Over the past twenty years, the variety of publicly listed U.S. corporations has fallen by almost 50%, whereas personal capital has ballooned right into a $13 trillion world asset class. For the ultra-wealthy, entry—not returns alone—has develop into the differentiator.

“Extremely-high-net-worth buyers are not content material with public equities and bonds,” notes Prof. Dr. Amarendra Bhushan Dhiraj, Govt Chair of CEOWORLD Journal. “They need the identical institutional-grade offers that endowments, sovereign wealth funds, and top-tier personal fairness companies have been accessing for years.”

Merrill and BofA are transferring to bridge that hole—bringing unique, limited-access funds on to purchasers who meet the stringent $50 million threshold.

Key Options of the Alts Expanded Entry Program

The Alts Expanded Entry Program is designed to complement Merrill’s and BofA Non-public Financial institution’s core different funding platforms whereas offering a bespoke, extremely selective layer of alternatives.

• Selective Entry: This system sources funds that aren’t broadly distributed, spanning rising themes, area of interest methods, and evolving sectors—areas that UHNW households more and more demand.
• Supported Suggestions: Advisors present purchasers with supplies from fund managers, however the decision-making course of stays client-driven.
• Direct Funding Mannequin: Purchasers conduct due diligence and make investments instantly with fund managers, giving them a degree of management and transparency usually lacking in packaged options.

This mannequin displays a deliberate pivot: from wealth managers “promoting merchandise” to empowering UHNW purchasers as institutional-style allocators.

The Knowledge Behind the Demand

The transfer is underpinned by insights from the 2024 Financial institution of America Non-public Financial institution Research of Rich Individuals, which surveyed tons of of high-net-worth and ultra-high-net-worth buyers. Among the many key findings:

• 17% of portfolios are already allotted to options.
• 93% of rich buyers plan to extend allocations within the subsequent three to 5 years.
• Amongst buyers below 45, options are seen not as a satellite tv for pc allocation, however as a core portfolio driver.

The examine additionally revealed a generational divide: youthful wealth holders—significantly next-gen heirs—are much more comfy embracing illiquid, long-duration methods. For them, personal fairness, personal credit score, enterprise capital, and personal actual property will not be diversifiers; they’re cornerstones of future wealth creation.

Constructing on a Confirmed Observe Document

This system follows BofA’s earlier UHNW initiative, Premium Entry Methods, a dual-contract funding advisory program that amassed over $60 billion in property in lower than three years. The success of that platform demonstrated the urge for food of America’s wealthiest households for institutional-style autos that mix exclusivity with scale.

By layering the Alts Expanded Entry Program on high of its present suite, BofA is signaling that options are transferring from elective to important in UHNW wealth planning.

Why UHNW Buyers Are Turning to Options

For personal fairness buyers, hedge fund managers, and billionaire household places of work, the rationale for options is multifaceted:

• Entry to Progress: A lot of as we speak’s most disruptive corporations—significantly in AI, local weather tech, and biotech—keep personal for longer. The one solution to take part early is thru personal markets.
• Diversification: With public fairness valuations stretched and bond yields risky, options provide differentiated return streams.
• Inflation Hedge: Actual property—corresponding to infrastructure and personal actual property—are enticing in an period of upper inflation.
• Legacy Planning: UHNW households more and more see options as a solution to protect buying energy and switch wealth throughout generations.

As one managing associate of a New York-based household workplace advised CEOWORLD Journal: “Public markets not outline success. For UHNW households, it’s about discovering uneven alternatives in personal markets—and avoiding the herd.”

Strategic Implications for CEOs and Household Places of work

For CEOs working family-owned companies, wealth planners structuring estates, and personal fairness principals managing LP relationships, BofA’s program has broader implications:

• Rising Boundaries to Entry: By setting the edge at $50 million internet value, BofA is reinforcing the tiering of wealth entry—not each millionaire will get a seat at this desk.
• Institutionalization of Household Places of work: UHNW households are being nudged to undertake institutional-grade processes—from due diligence to supervisor choice.
• Competitors Amongst Non-public Banks: BofA is making a transparent play to distinguish towards JPMorgan, Goldman Sachs, and Morgan Stanley, which have lengthy dominated the UHNW options panorama.

That is as a lot a aggressive positioning transfer as it’s a client-service innovation.

The Threat Dimension

Whereas the attract of personal markets is plain, it comes with structural dangers:

• Illiquidity: Lock-up intervals of seven–10 years might not go well with each household’s money circulate wants.
• Opaque Valuations: Not like public equities, personal market pricing can lack transparency.
• Focus Threat: Area of interest methods—corresponding to early-stage biotech—can ship outsized features but additionally wipe out capital.

BofA’s client-directed mannequin mitigates a few of these dangers by forcing UHNW buyers to personal their choices—however it additionally assumes they’ve subtle inner groups or advisors.

The Larger Image: Wealth Creation in a Non-public World

If the late twentieth century was outlined by wealth created in public markets—suppose Microsoft, Apple, Amazon—the twenty first century is more and more outlined by personal wealth creation. From AI unicorns to non-public infrastructure funds, the very best alternatives are more and more off-limits to the typical investor.

BofA’s Alts Expanded Entry Program is each a response to and a driver of that development. For billionaires, centimillionaires, and the higher echelon of HNWIs, it underscores a easy reality:

The way forward for wealth is personal.

Govt Takeaways

• Financial institution of America and Merrill’s Alts Expanded Entry Program launches fall 2025, focusing on purchasers with $50M+ internet value.
• Designed for UHNW buyers, it gives direct entry to institutional-grade personal market funds.
• Demand for options is booming: 93% of rich Individuals plan to extend allocations.
• Dangers embrace illiquidity and opacity, however alternatives in AI, local weather tech, and personal credit score make options more and more important.
• For CEOs, household places of work, and wealth planners, this system alerts a brand new period: options are not elective—they’re the core of UHNW wealth technique.