Company Announcements

Schwab Advisor Services Launches the Schwab Alternative Investment Marketplace™ Platform

SAN FRANCISCO--(BUSINESS WIRE)--Oct. 24, 2019-- Schwab Advisor Services today introduced the Schwab Alternative Investment Marketplace™platform, which gives Schwab’s independent advisor clients access to third-party platform sponsors that offer menus of private funds. The new platform delivers a number of benefits for independent advisors, including removal of custodial fees, streamlined capital call processing, and access to third-party alternative investment funds.

“We continually listen to what advisors tell us they need, and based on their feedback, we’re pleased to provide access for their clients to a growing list of alternative investment funds,” said Jalina Kerr, senior vice president, Client Experience, Schwab Advisor Services. “By working with known firms that have experience and scale, we’re offering an additional way to deliver alternative investment solutions to clients.”

The Schwab Alternative Investment Marketplaceplatform offers access to private funds provided by third-party platform sponsors. These sponsors provide advisors a seamless experience by pre-qualifying clients, controlling document workflows electronically, and offering access to detailed fund information. Minimums starting at $100,000 give advisors’ eligible1 clients the opportunity to participate in sophisticated solutions designed for high-net-worth investors while allowing advisors to customize the use of alternative investments to meet their clients’ needs.

iCapital Network2 is the first third-party platform sponsor to join the Schwab Alternative Investment Marketplace platform. iCapital Network offers technology and comprehensive due diligence to support advisors throughout the investing process. To learn more about iCapital’s solutions, visit icapitalnetwork.com.

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.

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Disclosures

Through its operating subsidiaries, The Charles Schwab Corporation (NYSE: SCHW) provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, www.sipc.org), and 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; compliance and trade monitoring solutions; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at www.schwab.com and www.aboutschwab.com.

Selecting the link above will navigate to a third-party website or tool that is neither affiliated with nor endorsed by Charles Schwab & Co., Inc. (“Schwab”) and has not been prepared, reviewed, or approved by Schwab. Schwab is not responsible for, nor does Schwab endorse, its content. Usage is subject to the terms and conditions and the privacy policy established by such third party. These link(s) are provided for informational purposes only. The mention of third-party firms is not and should not be construed as a recommendation, endorsement, or sponsorship by Schwab. These firms are not affiliated with or an employee of Schwab. You must decide whether to use any firm and determine the appropriateness of their services for you or your firm. Schwab does not supervise third-party firms and takes no responsibility to monitor the services the third-party firms provide.

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. Alternative investments often employ leverage and other speculative practices that increase an investor’s risk of loss, often charge high fees, may require investors to satisfy capital calls, and can be highly illiquid and volatile. These investments may lack diversification, involve complex tax structures, and may experience delays in reporting tax information.

This is not an offer of, or a solicitation to subscribe to or purchase, securities.

Investors should read carefully the related prospectus or offering memorandum, which will contain the information needed to help evaluate the potential investment and will provide important disclosures regarding risks, fees, and expenses.

Schwab receives remuneration from third-party platform sponsors participating in the Schwab Alternative Investment Marketplace platform for recordkeeping, shareholder services, and other administrative services.

Schwab does not provide investment advisors, or their clients, advice about potential investments in any Schwab or third-party alternative investment platform (including the funds made available on such platforms that participate in the Schwab Alternative Investment Marketplace platform), and funds that may be held in custody. It is each investment advisor’s responsibility to determine the suitability of such an investment for his or her clients. Alternative investments are risky, and an advisor’s clients may lose their entire investment in a fund.

Third-party firms, including platform sponsors such as iCapital Network are not owned by, affiliated with or supervised by Charles Schwab & Co., Inc.

This material is provided for informational purposes only and is not intended as, and may not be relied on in any manner as legal, tax or investment advice, a recommendation, or as an offer to sell, a solicitation of an offer to purchase or a recommendation of any interest in any fund or security offered by Institutional Capital Network, Inc. or its affiliates (together “iCapital Network”). Alternative investments such as those described are complex, speculative investment vehicles and are not suitable for all investors. An investment in an alternative investment entails a high degree of risk and no assurance can be given that any alternative investment fund’s investment objectives will be achieved or that investors will receive a return of their capital. The information contained herein is subject to change and is also incomplete. This industry information and its importance is an opinion only and should not be relied upon as the only important information available. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed.

Securities may be offered through iCapital Securities, LLC, a registered broker dealer, member of FINRA and SIPC and subsidiary of Institutional Capital Network, Inc. All rights reserved.

Brokerage Products: Not FDIC Insured • No Bank Guarantee • May Lose Value

Schwab Advisor Services™ serves independent investment advisors and includes the custody, trading, and support of Schwab.

Schwab Advisor Services™ serves independent investment advisors and includes the custody, trading and support services of Schwab.

Independent investment advisors are not owned by, affiliated with, or supervised by Schwab. For informational purposes only.

©2019 Charles Schwab & Co., Inc. (“Schwab”) All rights reserved. Member SIPC.

(1019-9TNE )

1 Clients must meet eligibility requirements as determined by the third-party platform sponsor and the issuer to invest into funds.
2Institutional Capital Network, Inc., and its affiliates (together, “iCapital Network” or “iCapital”).

Source: Charles Schwab & Co., Inc.

Meredith Richard
Schwab Corporate Public Relations
212-403-9255
meredith.richard@schwab.com