Vanguard's private-fund launch bypasses RIAs for Merrill, BofA

RIABiz first reported that Vanguard, Wellington, and Blackstone launched two co-branded funds on July 22. The WVB All Markets Fund and WVB Blackstone All Privates Fund carry a $2,500 minimum for non-accredited investors. But Merrill Lynch and Bank of America private bankers are the exclusive distribution channel, with internal thresholds limiting sales to clients with $250,000 to $3 million-plus for formal private banking customers.

The partnership was first disclosed in April 2025, but the exclusive distribution arrangement was not mentioned at the time, according to RIABiz. Executives at the three firms say RIA access is being 'explored,' but not now. The asset managers declined to say when the exclusivity might end.

Vanguard's chief investment officer Greg Davis called the launch a 'first step' in expanding access, while Wellington CEO Jean Hynes described Merrill's exclusivity as an 'initial' stage. Jeff DeMaso, editor of the Independent Vanguard Advisor newsletter, said in the report that Vanguard is in the back seat in the partnership.

This launch marks Vanguard's tentative push into private investments for retail investors, but by handing exclusive distribution to a wirehouse channel, RIAs are cut out of the initial rollout. For advisors, it underscores that private-market access is still negotiated product-by-product, not a given in open architecture.

The entrance threshold also signals that despite the $2,500 minimum, the funds are being groomed for affluent clients through Merrill and BofA, with private-bank clients at the top of the range. RIAs seeking similar access for their clients will likely have to push for a seat at the table.

Vanguard's decision to route through Merrill and BofA suggests it sees the wirehouse model as the fastest path to scale for a new private-markets platform. But it also means Vanguard's brand is now an acquisition tool for competitors to RIAs. For independent firms, the 'explored' RIA channel is likely a hedge — if the funds gain traction, the economics will be hard to ignore.

DeMaso's point that Vanguard is in the back seat is worth noting. Wellington and Blackstone are carrying the investment burden, while Vanguard contributes brand and distribution muscle. RIAs building private-market partnerships of their own should watch whether Wellington and Blackstone eventually decouple from Vanguard's channel or use it as a beachhead.

Watch for the asset managers to announce a separate RIA distribution channel, or for Merrill's exclusivity to soften if the funds struggle to hit subscription targets. Vanguard's 'first step' language leaves room for a broader rollout.