Bank of America is expanding into private markets with a new programme that will allow clients with at least $50m in assets to invest in private equity funds, according to sources cited by Bloomberg.

The initiative, developed through Merrill and Bank of America Private Bank, will launch its first fund next month.

“Differentiated access is becoming more and more critical. The idea of exclusivity and getting unique access is important to the ultra-high-net-worth cohort,” said Mark Sutterlin, Head of Alternative Investments for Merrill and Bank of America Private Bank.

The funds will primarily use direct and traditional drawdown structures. Advisers will receive training to ensure clients understand how the programme differs from existing wealth offerings. Eligible investors will also gain access to fund data rooms to directly review and evaluate opportunities.

The move highlights a broader trend as financial institutions race to court wealthy individuals amid a slowdown in institutional private equity allocations. Morgan Stanley, Goldman Sachs, and BlackRock have each introduced comparable products in recent years.

Goldman Sachs this week announced plans to invest $1bn in T Rowe Price, part of a partnership to expand private market access for retail and wealth clients.

Bank of America said the number of private equity funds offered each year will depend on client demand as it seeks to grow its alternative investment platform.

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