Private market investments are breaking free from their exclusive club status as Merrill Lynch, Goldman Sachs, and Wells Fargo launch competing programs to bring alternative assets to broader investor bases. 

Robert A. Stanger reported $122 billion raised from retail investors in 2024, topping the previous $105 billion record from 2022. Bank of America Private Bank found that 93% of investors aged 21-43 want more alternative exposure, already allocating 17% of portfolios compared to just 5% for older clients. 

Junior broker at Servelius highlights how this demographic shift forces wealth managers to rethink their offerings.

Merrill’s Elite Alternative Access Program

Merrill Lynch launched their Alts Expanded Access Program for clients with $50 million or more in investable assets. This program provides access to private equity funds with smaller capacity allotments.

Mark Sutterlin, head of alternative investments, explains that clients become limited partners in funds, taking greater responsibility for due diligence. Merrill advisors begin introducing clients to funds this fall.

Goldman’s Retirement Account Revolution

Goldman Sachs partnered with T. Rowe Price in a $1 billion deal to bring alternatives into target-date funds designed for retirement accounts. This partnership aims to launch products by mid-2026.

Greg Wilson, head of retirement for Goldman’s asset management unit, notes that public company listings have halved over 20 years. Recent executive orders directed the Department of Labor to review fiduciary guidelines governing alternative investments in retirement plans.

Wells Fargo’s Unified Account Approach

Wells Fargo brings private equity, credit, real estate, and hedge funds into single accounts through its Personalized Unified Managed Account program with flat percentage fees.

Greg Maddox, product management executive for Wells’ Wealth and Investment Management, explains that the unified approach simplifies rebalancing tasks. Working with InvestCloud, Wells offers access to derivatives and long-short strategies.

Demographic Divide Drives Demand

Bank of America’s survey of over 1,000 investors with $3 million or more reveals stark generational differences in alternative investment appetite. Younger investors (21-43) already allocate 17% to alternatives versus 5% for those 44 and older.

The younger cohort’s 93% desire for increased alternatives exposure contrasts sharply with older investors’ conservative approach. This demographic shift forces wealth managers to develop products appealing to different risk tolerances and investment philosophies.

Nuveen’s Brian Griggs suggests most advisory clients should allocate 20% to alternatives as a starting point, with adjustments based on individual circumstances. Some family offices and RIAs have clients with up to 50% private market allocations.

Regulatory Changes and Industry Response

Recent executive orders calling for Department of Labor review of fiduciary guidelines face industry resistance. American Retirement Association CEO Brian Graff argues that professional fiduciaries, not government, should determine appropriate investments for plan participants.

The regulatory changes could open 401 (k) and retirement accounts to private equity, private credit, infrastructure, real estate, and cryptocurrency investments. This represents a massive expansion of available investment options for ordinary Americans.

Plan sponsors previously avoided alternatives due to litigation risks and fiduciary concerns. New guidelines could reduce these barriers, encouraging broader adoption of private market investments in retirement plans.

Technology Platforms Enable Access

Wells Fargo’s partnership with InvestCloud demonstrates how technology platforms enable complex investment management at scale. Unified managed accounts handle diverse asset classes through a single interface, reducing operational complexity.

Goldman and T. Rowe Price develop systems helping RIAs offer managed retirement accounts with alternative exposure. These platforms democratize access to sophisticated investment strategies previously available only to institutional investors.

Model portfolios combining alternatives with traditional investments simplify advisor recommendations and client understanding. Technology integration allows flat fee structures replacing complex commission arrangements.

Liquidity and Fee Challenges

Private market investments typically require multi-year commitments with limited liquidity during holding periods. This illiquidity premium historically generated higher returns but creates challenges for investors needing emergency fund access.

Nuveen’s Private Markets Institute educates advisors about balancing illiquid alternatives with liquid traditional investments based on client cash flow needs. The 20% baseline allocation provides diversification benefits while maintaining adequate liquidity.

Wells Fargo’s unified fee structure eliminates separate commissions and creates transparent cost frameworks for complex investment portfolios. Traditional private market investments often involve multiple fee layers that unified programs simplify while maintaining competitive total costs.

Market Reality Check

The alternative investment expansion faces practical limitations despite regulatory support and industry enthusiasm. High minimum investments, complex structures, and limited liquidity restrict mass market adoption regardless of platform accessibility.

Brian Griggs notes that 5% allocations might not justify the extra effort required to understand alternative investments. Meaningful exposure requires sufficient allocation sizes to impact overall portfolio performance and risk characteristics.

Investment education remains the biggest barrier to broader adoption. Success requires balancing accessibility with appropriate investor protection while maintaining the return characteristics that make alternatives attractive. Oversimplification could eliminate the benefits that justify higher fees and reduced liquidity.