Charles Schwab to buy private shares platform Forge Global in $660 million deal

Charles Schwab has agreed to acquire private shares platform Forge Global for $660 million, or $45 per share, representing a 72% premium over its last closing price, which sent Forge's stock surging 65% in premarket trading. This strategic acquisition aims to meet growing investor demand for access to high-growth private companies, a trend where major financial institutions are expanding services for pre-IPO shares as startups opt to stay private longer. The deal, which aligns with similar moves in the industry like Morgan Stanley's acquisition of EquityZen, is expected to close in the first half of 2026.

Analysis

Charles Schwab has agreed to acquire private shares platform Forge Global for $660 million, valuing the company at $45 per share. This represents a substantial 72% premium over Forge's last closing price, leading to a 65% surge in Forge Global's premarket trading. The acquisition, expected to close in the first half of 2026, signals Schwab's strategic move into the burgeoning private markets.

This acquisition directly addresses the growing investor demand for access to high-growth private companies, a trend driven by prominent startups like OpenAI and SpaceX opting to remain private longer. Financial institutions are actively expanding services to provide liquidity in pre-IPO shares, as evidenced by Morgan Stanley's recent acquisition of rival EquityZen. Forge Global's existing marketplace has facilitated over $17 billion in private company share transactions.

For Charles Schwab, with its $170 billion market capitalization and $11.6 trillion in client assets, this deal enhances its wealth management and brokerage offerings. It positions Schwab to capture a larger share of sophisticated investor capital seeking early exposure to private market opportunities, thereby strengthening its competitive stance in a rapidly evolving financial services landscape.

Key Decisions for Investors

• Investors in Charles Schwab (SCHW) should evaluate the long-term strategic value of this acquisition, considering its potential to diversify revenue streams and capture growth in the expanding private markets segment.
• Investors holding Forge Global (FRGE) should recognize the significant acquisition premium and consider the implications of the H1 2026 closing timeline for their position.
• Market participants should monitor the competitive response from other financial institutions and the broader impact on private market liquidity platforms, as this M&A trend indicates increasing institutional focus on this asset class.