- Charles Schwab agreed to buy Forge Global for $660 million in cash, or $45 per share, in a deal unanimously approved by both boards. Closing is targeted for 1H 2026, pending regulatory and shareholder approvals. [1]
- The offer implies roughly a 72% premium to Forge’s last close; FRGE spiked in premarket trading after the announcement. [2]
- Schwab says the combination will “deepen liquidity, improve transparency, and democratize access” to private markets across its 46 million client accounts and $11.6T in client assets. [3]
- The move follows Morgan Stanley’s Oct. 29 agreement to acquire rival private‑shares marketplace EquityZen, underscoring Wall Street’s pivot to pre‑IPO trading and late‑stage private equity exposure. [4]
The deal at a glance
Schwab will acquire all of Forge’s issued and outstanding common shares for $45 in cash per share. The companies expect to close in the first half of 2026, subject to customary approvals. Forge’s two largest shareholders—Motive Capital and Deutsche Börse—have signed support agreements backing the transaction. [5]
According to the announcement, Forge operates a marketplace and associated infrastructure that has facilitated more than $17 billion in trades of private‑company shares. Schwab scheduled a webcast at 8:30 a.m. ET today to discuss the transaction. [6]
Why it matters
Private companies—from AI leaders to space and fintech unicorns—are staying private longer, pushing demand for secondary trading of private shares. Schwab’s purchase inserts one of the largest U.S. retail brokers squarely into that market, expanding access for qualified clients while giving private issuers another path to employee liquidity and cap‑table management. [7]
Schwab’s CEO Rick Wurster (in the role since Jan. 1, 2025) framed the deal as the next step in a decades‑long strategy to broaden client choice in alternatives. The company recently launched Schwab Alternative Investments Select for eligible households with more than $5 million at the firm and introduced Schwab Private Issuer Equity Services—both initiatives that knit together with Forge’s marketplace. [8]
“We’re uniquely positioned to deepen liquidity, improve transparency, and further democratize access,” Wurster said in the release. [9]
Context: A scramble for private‑shares plumbing
The Schwab–Forge agreement lands just eight days after Morgan Stanley said it would buy EquityZen, another major venue for private‑company secondaries. Together, those moves signal a new round of competition among large wealth platforms to own the pipes that connect affluent and institutional investors to pre‑IPO stakes—and to capture the data and fees that come with them. [10]
Reuters today also noted that the $45‑per‑share price equates to about a 72% premium to Forge’s last close and that FRGE jumped strongly in early trading, highlighting investor expectations for consolidation in private‑markets infrastructure. [11]
What Forge brings to Schwab
- Marketplace + data: An alternative trading system (ATS), private‑company solutions, and proprietary datasets covering supply/demand and pricing in thousands of late‑stage startups. [12]
- Scale to distribute: With 46M accounts at Schwab, the combined platform can route qualified client demand to company‑approved liquidity programs—potentially improving match rates and execution in tender offers and secondary blocks. [13]
- Product breadth: Forge has interval funds in the pipeline aimed at lowering minimums and costs for diversified private‑market exposure (still limited to investors who meet regulatory qualifications). [14]
Terms, advisors, and timeline
- Consideration: $660 million, all‑cash; $45 per Forge share. [15]
- Approvals: Forge shareholders and regulatory reviews; expected close 1H 2026. [16]
- Shareholder support: Commitments from Motive Capital and Deutsche Börse to vote in favor. [17]
- Advisors: J.P. Morgan (financial) and Wachtell, Lipton, Rosen & Katz (legal) for Schwab; Financial Technology Partners (financial) and Morris, Nichols, Arsht & Tunnell (legal) for Forge’s special committee; Sullivan & Cromwell for Forge. [18]
Market reaction
Forge Global (FRGE) surged in premarket trading on the headline. Reuters pegs the offer premium at about 72% to the prior close, which aligns with the deal math at $45 per share. Charles Schwab (SCHW) shares were comparatively steady as investors weighed strategic benefits against integration and regulatory timelines. [19]
What to watch next
- Regulatory pathway & timing – Changes in broker‑dealer/ATS control typically require multiple approvals; both companies guide to first‑half 2026 for completion. [20]
- Product integration – How quickly Schwab threads Forge’s order flow, data, and company‑approved liquidity programs into its alternatives platform for qualified retail and advisory clients. [21]
- Competitive response – With Morgan Stanley buying EquityZen, watch for moves from other wirehouses, custody platforms, and fintechs to secure private‑markets access and data. [22]
FAQ
Who can buy private shares on the combined platform?
Per Schwab’s announcement, access remains limited to qualified investors (e.g., accredited/qualified purchasers), and private securities are illiquid and risky. [23]
Why is the premium so high?
Secondary platforms can be strategic assets: they aggregate demand, issuer relationships, and pricing data. For Schwab, that can translate into advice, product, and trading revenue—plus stickier relationships with wealthy households and private issuers. [24]
When will clients see changes?
The companies expect closing in 1H 2026, after which integration can begin. In the meantime, Schwab will continue expanding its alternatives lineup and issuer‑services tools announced this year. [25]
Primary sources: Charles Schwab press release; Reuters; FT (early report on negotiations); Morgan Stanley press release on EquityZen.
Citations: Schwab press release (deal terms, strategy, investor eligibility, advisors, webcast time) [26]; Schwab newsroom summary page [27]; Reuters (value, per‑share price, premium, premarket reaction, close timeline, market context) [28]; Morgan Stanley–EquityZen press release (context) [29].
Disclaimer: This article is for information only and does not constitute investment advice. Private-market investments are illiquid and involve significant risk.
References
1. www.businesswire.com, 2. www.reuters.com, 3. www.businesswire.com, 4. www.morganstanley.com, 5. www.businesswire.com, 6. www.businesswire.com, 7. www.reuters.com, 8. www.aboutschwab.com, 9. www.businesswire.com, 10. www.morganstanley.com, 11. www.reuters.com, 12. www.businesswire.com, 13. www.businesswire.com, 14. www.businesswire.com, 15. www.businesswire.com, 16. www.reuters.com, 17. www.businesswire.com, 18. www.businesswire.com, 19. www.reuters.com, 20. www.reuters.com, 21. www.businesswire.com, 22. www.morganstanley.com, 23. www.businesswire.com, 24. www.reuters.com, 25. www.businesswire.com, 26. www.businesswire.com, 27. pressroom.aboutschwab.com, 28. www.reuters.com, 29. www.morganstanley.com
