Schwab Bets $660 Million on Private-Markets Platform Forge Global

Schwab to Acquire Forge Global in $660 Million Deal to Tap Private Markets

Charles Schwab (SCHW.N) has announced its acquisition of Forge Global (FRGE.N), a private shares trading platform, in a move aimed at expanding access to private market investments. The all-cash deal, valued at $660 million, is set to provide Schwab's clients with new opportunities to invest in high-growth startups that have traditionally been off-limits to retail investors.

The deal values Forge at $45 per share, marking a 72% premium over its most recent closing price. Following the announcement, Forge's stock jumped by 65% in premarket trading. The transaction is expected to be completed by the first half of 2026, pending regulatory approvals.

The acquisition highlights Schwab's strategic push to capture a share of the growing private market trading sector, which has seen rising demand from both individual and institutional investors. Companies like OpenAI, SpaceX, and ByteDance, which have valuations comparable to major public companies, have contributed to narrowing the gap between private and public markets.

"Some of the world's largest startups now rival public companies in size and influence," said one analyst. "Investors want access to those returns before the IPO window reopens."

Forge Global operates a marketplace that connects accredited investors with early-stage companies seeking liquidity. Since its public debut in 2021, Forge has facilitated over $17 billion in private share transactions. Its platform has seen a resurgence in value this year, with its stock rising 87% amid takeover speculation.

Schwab, one of the largest financial institutions in the U.S., manages $11.6 trillion in client assets and is looking to broaden its investment offerings. The deal aligns with Schwab's broader strategy to provide access to alternative investments, such as venture capital and private equity funds, as demand for such assets grows among high-net-worth clients.

The acquisition also reflects a wider trend in the financial industry as major brokerages, including Morgan Stanley's recent acquisition of rival EquityZen, seek to dominate the private equity market. Analysts suggest that Schwab's entry into private-market trading is a response to shifting investor preferences, with private assets increasingly seen as integral to diversified portfolios.

As startups delay public listings, secondary market liquidity is expected to remain strong, and Schwab is positioning itself to serve both retail and institutional investors looking for exposure to the private equity space.