Bank of America's New Alts Access Program: What Does it Mean for the Stock?

Bank of America has launched an Alts Expanded Access Program, allowing ultra-wealthy clients to invest in private market funds and exclusive opportunities. The move is in response to rising demand among affluent investors for alternatives outside the public markets. Despite this, BAC stock is considered overvalued, with a fair value estimate below the current price. The narrative projects revenue and earnings growth, but sudden economic downturns or regulatory changes could negatively impact the valuation.

Bank of America has expanded its offerings to ultra-high-net-worth (UHNW) clients with the launch of the Alts Expanded Access Program. This new program provides access to institutional-grade private market funds and exclusive investment opportunities. The initiative is a response to the growing demand among affluent investors for alternative investments outside the traditional public markets.

The Alts Expanded Access Program, set to be available in fall 2025, is designed to complement the existing alternative investments platform of Merrill Wealth Management and Bank of America Private Bank. It aims to offer qualified investors avenues to build an expanded allocation to alternatives as part of a diversified portfolio. According to Mark Sutterlin, head of alternative investments for Merrill and Bank of America Private Bank, "Traditionally, private market alternatives were the domain of institutional investors, but as wealth building needs have evolved, we’re seeing more clients seek non-traditional investments, fueled by market changes and the desire to diversify" [1].

Key features of the Alts Expanded Access Program include selective access to specialized opportunities in emerging themes, niche strategies, and evolving sectors. Clients will have the support of their advisors in understanding the process and accessing fund manager materials. The program is client-directed, allowing investors to conduct due diligence, make investment decisions, and invest directly with fund managers.

The 2024 Bank of America Private Bank Study of Wealthy Americans revealed a growing interest in alternatives, particularly among high-net-worth (HNW) investors. The study found that alternatives comprise 17% of their current portfolio allocations, with 93% planning to increase their allocation to alternatives in the coming years [1]. This program is part of Bank of America’s broader commitment to meet the evolving needs of UHNW clients with increasingly complex financial goals.

While the Alts Expanded Access Program offers new opportunities for UHNW clients, it is essential to consider the risks associated with alternative investments. Private investments involve significant risks, including those associated with companies with a limited operating history, securities that do not have a liquid market, and investments that are difficult to value. They are only appropriate for investors with substantial knowledge and prior experience in making private investments.

Despite the potential benefits, Bank of America Corporation (BAC) stock is considered overvalued, with a fair value estimate below the current price. The narrative projects revenue and earnings growth, but sudden economic downturns or regulatory changes could negatively impact the valuation.

References:
[1] https://newsroom.bankofamerica.com/content/newsroom/press-releases/2025/09/merrill-and-bank-of-america-private-bank-launch-new-alternative-.html