Charles Schwab Corporation has just announced its plans to acquire Forge Global Holdings in a deal worth $660 million. This move is a significant step into the growing market for private company shares. With this acquisition, Schwab aims to provide investors with greater access to pre-IPO investment opportunities, especially as the demand for exposure to private markets continues to rise.
Under the agreement, Schwab is set to buy all outstanding shares of Forge Global for $45 each in cash, which is a notable premium compared to Forge’s recent market value. Both companies’ boards have given their unanimous approval for the deal, which is anticipated to finalize in the first half of 2026, pending the necessary shareholder and regulatory approvals.
Forge Global, which kicked off its journey in 2014 and went public through a SPAC merger, has become one of the top trading platforms for shares in private companies. The company has successfully handled over $17 billion in private share transactions, enabling investors and employees from high-growth firms like SpaceX, Stripe, and Epic Games to buy and sell their equity stakes even before they go public.
For Schwab, this acquisition marks a smart move into a crucial area of global finance. As startups are staying private for longer and racking up valuations in the billions, investors are keen to tap into these rapidly growing companies before they hit the public market. By bringing Forge’s technology and marketplace into its fold, Schwab is setting itself up as a go-to hub for both public and private investments.
Rick Wurster, the President of Charles Schwab, shared that this acquisition is a game-changer for the firm, as it aims to “democratize access to private markets.” This move will open up fresh avenues for clients to diversify their portfolios and get involved in early-stage value creation. He also pointed out that this merger brings together Schwab’s impressive client base of over 46 million brokerage accounts with Forge’s specialized knowledge in trading private company shares on the secondary market.
The transaction really showcases Schwab’s bigger goal of broadening its alternative investment options. Over the past few years, the firm has rolled out initiatives aimed at wealthy clients who are looking to dive into private equity, venture capital, and hedge funds. The acquisition of Forge is set to enhance these efforts, providing fresh tools and liquidity choices for investors keen on high-growth private assets.
While analysts point out that putting money into pre-IPO shares comes with higher risks and less transparency than investing in public market assets, it’s important to tread carefully. The valuations of private companies can swing dramatically, and during market downturns, secondary markets might not offer enough liquidity. Schwab has recognized these hurdles and made it clear that these investment opportunities will mainly be available to qualified or accredited investors.
The deal comes at a time when financial institutions are increasingly competing to take advantage of the booming private markets. Other firms are also making similar moves, pouring money into platforms that link accredited investors with startup shares and alternative assets. Schwab’s move into this arena shows how traditional financial players are evolving to meet the growing demand from investors for earlier access to potentially high-growth companies.
Once the merger wraps up, Schwab will become one of the biggest financial players out there, providing seamless access to both traditional and private market investments. This acquisition is set to boost Forge’s growth while also giving Schwab the chance to offer clients a broader array of wealth-building options that go beyond just the public markets.