Schwab Buys Forge Global for $660M in Private Market Push
The all-cash deal represents a major bid by the brokerage giant to offer clients direct access to pre-IPO shares and alternative assets.
Charles Schwab Corp. has announced a definitive agreement to acquire Forge Global in a $660 million all-cash transaction, a strategic move aimed at unlocking the burgeoning private securities market for its vast client base. The deal, which confirmed earlier reports, signals a significant push by the brokerage titan to compete in the expanding world of alternative investments.
The market’s reaction underscored the deal's perceived value for each party. Shares of Forge Global (NYSE: FRGE) exploded higher, surging over 68% to close at $43.96 in Wednesday trading. In stark contrast, Schwab’s stock (NYSE: SCHW) saw a muted response, inching up less than half a percent to $94.12, as investors digested the implications of the acquisition and the hefty premium paid.
A Gateway to Pre-IPO Investing
Schwab's acquisition of Forge, a leading platform for trading shares of private, venture-backed companies, addresses a fundamental shift in capital markets. As high-growth technology firms increasingly delay initial public offerings, a substantial portion of their value creation now occurs in the private domain, traditionally accessible only to institutional investors and venture capital funds. This deal positions Schwab to democratize that access for its millions of retail clients and the advisors who use its platform.
“We are always looking for ways to meet the evolving needs of our clients,” said a Schwab spokesperson in the official press release. “Forge’s platform provides a regulated and transparent marketplace that will allow our clients to participate in the growth of innovative private companies.”
Paying a Premium for Growth
The terms of the deal value Forge Global at approximately $660 million. This represents a substantial premium of roughly 72% over Forge’s closing price on the day before the announcement, a detail not lost on market observers. While Schwab’s shares remained stable, the high valuation reflects the strategic imperative to gain a foothold in the private markets space, where competition is intensifying.
This move follows similar initiatives from rivals like Morgan Stanley, which has also invested in providing its clients with access to private equity and pre-IPO shares. The acquisition allows Schwab to instantly integrate an established marketplace rather than building one from the ground up, accelerating its time to market. Analysts noted that while the price is high, the long-term strategic benefit of capturing private market flows could justify the cost as more wealth shifts toward alternative assets.
Strategic Rationale and Future Outlook
The integration of Forge is expected to provide Schwab’s clients with a seamless digital experience for buying and selling private company shares. For Forge, being acquired by a financial institution with Schwab's scale—overseeing trillions in client assets—offers a massive distribution channel and enhanced liquidity for its platform.
The transaction is expected to close in the first half of 2026, subject to customary closing conditions and regulatory approvals, including a vote from Forge Global shareholders. While the strategic fit appears clear, Schwab will face the challenge of integrating Forge’s specialized, high-growth platform into its more established and regulated brokerage ecosystem.
The deal represents one of the most significant consolidations in the private securities market to date and highlights a broader industry trend. As the lines between public and private markets continue to blur, major wealth management firms are racing to become one-stop shops for a new generation of investors demanding access to a wider spectrum of assets, from high-flying startups to established blue-chip stocks.