Charles Schwab’s announcement of its planned $660 million acquisition of Forge Global Holdings represents a watershed moment in the ongoing transformation of how retail investors and registered investment advisors access private market investments. The deal, expected to close in the first half of 2026, positions Schwab at the forefront of a rapidly evolving landscape where major financial institutions are racing to democratize access to pre-IPO companies and private securities.
Under the terms of the agreement, Schwab will purchase all outstanding shares of Forge Global for $45 per share in cash—a substantial premium of approximately 72% over Forge’s last closing price. This significant premium underscores both the strategic value Schwab sees in Forge’s platform and the competitive intensity surrounding private market access.
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The Rise of Private Markets Trading Platforms
Forge Global has established itself as a leading platform in the private securities marketplace, facilitating over $17 billion in transactions involving shares of private companies. The platform serves as a bridge between qualified investors seeking exposure to high-growth private companies and shareholders looking for liquidity before a traditional initial public offering or acquisition.
The company’s business model addresses a critical gap in the modern investment landscape. As more companies choose to remain private for extended periods—often well beyond the traditional timeline for going public—investors have found themselves increasingly locked out of significant wealth creation opportunities. Private companies now frequently achieve multibillion-dollar valuations while still private, with notable examples including SpaceX, Stripe, and numerous other technology unicorns.
Forge’s platform allows accredited investors to trade shares in these private companies through both direct investments and structured products. The company is also preparing to launch interval funds, which are designed to further lower the barriers to entry for private market participation by providing more flexible liquidity options for investors.
A Strategic Imperative for Schwab
For Charles Schwab, which manages approximately $11.6 trillion in client assets across more than 46 million accounts, the Forge acquisition represents a strategic imperative rather than merely an opportunistic expansion. The custody and brokerage giant has been methodically building out its alternative investments capabilities, recognizing that client demand for access to private markets has reached a tipping point.
Rick Wurster, who assumed the role of Schwab’s chief executive earlier this year, succeeding longtime CEO Walt Bettinger, described the acquisition as building on the company’s “longstanding focus on innovation for individual investors, advisors, and employers.” Wurster emphasized that Schwab is “uniquely positioned to deepen liquidity, improve transparency, and further democratize access to this increasingly important source of wealth creation for investors.”
The acquisition marks Wurster’s first major deal since taking the helm, signaling his strategic priorities and vision for the firm’s future direction. The move suggests that expanding alternative investments access will be a cornerstone of Schwab’s growth strategy under his leadership.
Schwab has already been laying the groundwork for expanded private market offerings. The firm recently launched Schwab Alternative Investments Select, a platform aimed at eligible retail clients with more than $5 million in household assets. This initiative provides access to a curated selection of alternative investment opportunities, including private equity funds, hedge funds, and other non-traditional asset classes.
The addition of Forge’s capabilities will significantly enhance Schwab’s ability to offer direct access to private securities, creating a more comprehensive suite of wealth and advisory solutions. Rather than relying solely on fund structures or other indirect vehicles, Schwab clients will potentially gain access to individual private company shares, opening up new avenues for portfolio diversification and growth.
Industry-Wide Competition Intensifies
Schwab’s move comes amid fierce competition among major financial institutions to capture share in the burgeoning private markets space. Just one week before Schwab’s announcement, Morgan Stanley agreed to acquire EquityZen, another prominent platform facilitating private company share transactions. This rapid succession of acquisitions underscores the urgency major brokerages feel to establish or expand their private markets presence.
The competitive dynamics reflect several converging trends. First, the number of publicly traded companies in the United States has declined dramatically over recent decades. According to data from the World Bank, the number of listed domestic companies in the U.S. peaked in the mid-1990s and has since fallen by nearly half. This decline means that significant portions of economic growth and value creation now occur within private companies, beyond the reach of traditional retail investors.
Second, private companies are remaining private longer than ever before. Whereas companies in previous decades might have gone public within five to seven years of founding, today’s startups often remain private for a decade or more. This extended private phase allows founders and early investors to capture more value before exposing the company to public market scrutiny and regulatory requirements, but it also means that by the time an IPO occurs, much of the explosive growth may have already happened.
Third, wealthy individuals and family offices have been steadily increasing their allocations to alternative assets, including private equity, venture capital, and direct private company investments. According to Schwab’s projections, private wealth capital allocated to alternative asset classes is expected to surge from $4 trillion today to $13 trillion by 2032. This explosive growth forecast reflects both the maturing of the private markets ecosystem and the growing sophistication of high-net-worth investors seeking diversification and enhanced returns.
Implications for RIAs and Wealth Advisors
The Schwab-Forge combination has particularly significant implications for registered investment advisors who custody assets with Schwab. RIAs have been increasingly fielding client questions about how to gain exposure to private market opportunities, particularly as news coverage of unicorn companies and venture capital success stories has proliferated.
Until now, most RIAs have had limited options for providing private market access. They could recommend private equity or venture capital funds, which typically require substantial minimum investments and lock up capital for extended periods. Alternatively, they could suggest publicly traded vehicles that invest in private companies, though these often trade at premiums or discounts to net asset value and may not provide the specific exposures clients desire.
Forge’s platform, integrated into Schwab’s ecosystem, could provide RIAs with a more flexible toolkit. Advisors might be able to help clients invest in specific private companies that align with their investment theses or industry interests. The interval funds Forge is developing could offer more regular liquidity options, making private market investments more compatible with comprehensive financial planning.
However, this expanded access also brings new responsibilities and challenges for advisors. Private company investments carry substantial risks, including illiquidity, lack of public information, difficulty in valuation, and high failure rates. RIAs will need to develop new competencies in due diligence, portfolio construction with illiquid assets, and client education to responsibly incorporate these investments into their practices.
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Regulatory Considerations and Investor Protection
The democratization of private market access raises important questions about investor protection and regulatory oversight. Currently, direct investments in private companies are generally restricted to accredited investors—individuals with annual income exceeding $200,000 (or $300,000 jointly with a spouse) or net worth above $1 million excluding primary residence.
These accreditation requirements, established by the Securities and Exchange Commission, are intended to ensure that investors participating in riskier, less-regulated investments have the financial sophistication and resources to withstand potential losses. However, critics have long argued that these rules are paternalistic and prevent ordinary investors from accessing high-growth investment opportunities available to the wealthy.
Platforms like Forge operate under securities regulations that govern broker-dealers and alternative trading systems. The SEC maintains oversight of these activities, though the regulatory framework continues to evolve as private markets grow in size and importance.
Schwab’s entry into this space, given its massive retail client base and reputation for investor-friendly practices, may accelerate calls for regulatory reforms that would expand private market access to a broader investor base while maintaining appropriate protections. The firm’s experience serving millions of retail clients could inform best practices for investor education, risk disclosure, and suitability standards in private markets.
The Future of Private Market Liquidity
Kelly Rodriques, chief executive of Forge, said in a statement that “this combination will transform how the private market works.” He added that with Schwab’s reach and Forge’s solutions, private companies will have more options for liquidity and growth, while investors will gain new ways to participate in the innovation economy.
Rodriques’ comments point to an often-overlooked benefit of enhanced private market trading infrastructure: improved liquidity for employees and early investors in private companies. Many startup employees receive significant equity compensation but have limited options for converting those paper gains into actual cash. Secondary markets like Forge provide a release valve, allowing these stakeholders to diversify their concentrated positions without waiting for an IPO or acquisition.
For private companies themselves, robust secondary markets can be advantageous. They provide a mechanism for employee liquidity that doesn’t require the company to go public prematurely or buy back shares directly. They also establish market-driven valuations that can inform fundraising rounds, option pricing, and strategic planning.
However, private companies also have legitimate concerns about secondary trading. Uncontrolled trading can lead to an unwieldy cap table with numerous unknown investors. It can create information asymmetries if some shareholders trade on material non-public information. And it can generate distracting price signals if secondary transactions occur on limited information or in thin markets.
Forge and similar platforms have developed processes to address these concerns, including company consent requirements for certain transactions and verification procedures to ensure buyers meet accreditation standards. As Schwab integrates Forge’s operations, refining these processes to balance liquidity, investor protection, and company interests will be crucial.
Deal Structure and Timeline
The transaction, which values Forge Global at $660 million, remains subject to customary closing conditions, including regulatory approvals and shareholder consent. Forge’s two largest shareholders, Motive Capital and Deutsche Börse, have already agreed to support the transaction, providing strong momentum toward completion.
The deal is expected to close in the first half of 2026, giving Schwab several months to plan for integration and to develop the product offerings that will leverage Forge’s capabilities. This timeline also allows for regulatory review by the SEC and potentially other agencies with jurisdiction over securities trading platforms and broker-dealer activities.
The $45 per share purchase price represents not only a significant premium to Forge’s recent trading prices but also a validation of the private markets opportunity. For Forge shareholders, the acquisition provides liquidity at an attractive valuation. For Schwab, the premium reflects confidence that the platform’s capabilities and market position justify the investment.
Conclusion: A New Era for Private Market Access
Schwab’s acquisition of Forge Global represents more than a simple corporate transaction—it signals a fundamental shift in how financial institutions view private markets and retail investor access. As the lines between public and private markets continue to blur, and as significant value creation increasingly occurs before companies go public, major brokerages are recognizing that private market capabilities are no longer optional enhancements but essential components of a comprehensive wealth management platform.
For investors, RIAs, and private companies alike, this new era promises both opportunities and challenges. Enhanced access to private markets could unlock new avenues for wealth creation and portfolio diversification. However, it also demands higher levels of financial sophistication, more robust risk management, and careful attention to the unique characteristics of private investments.
As this transformation accelerates, with Schwab and Morgan Stanley leading the charge, the investment landscape of the coming years may look markedly different from what we’ve known. The successful integration of platforms like Forge into mainstream brokerage offerings will test whether private market democratization can be achieved while maintaining appropriate investor protections and market integrity. The stakes are high, but so too is the potential to reshape American capitalism’s structure for a new generation of investors and entrepreneurs.
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By: Montel Kamau
Serrari Financial Analyst
7th November, 2025
