Charles Schwab has made headlines with its recent acquisition of investment platform Forge Global for $660 million, reflecting a heightened interest in private investment markets.
Forge Global, headquartered in San Francisco, enables retail investors to purchase shares in private companies, particularly late-stage startups. This secondary trading platform features a minimum investment requirement of $5,000 and has successfully facilitated over $17 billion in private transactions to date.
With more than 46 million accounts and $11.6 trillion in assets under management, Charles Schwab has established itself as a leader in the retail investment sector. Notably, the firm was one of the pioneers in the online trading space during the 1990s, making stock trading accessible to retail investors.
The surge in online trading platforms such as Robinhood during the pandemic lockdowns has further propelled this market’s growth. Historically, private market investments have remained niche due to high entry barriers, manual processing, and a lack of standardized data. However, the quest for enhanced returns has driven investor interest toward these markets.
In response, there have been significant efforts to democratize access to private investments, modernize the underlying technology, and improve data availability. The acquisition of Forge Global aligns with Charles Schwab’s recent initiatives, which include the launch of Schwab Alternative Investments Select and Schwab Private Issuer Equity Services earlier this year.
Moreover, competition in this space is intensifying, with Robinhood recently unveiling a fund for retail investors seeking access to private markets. In addition, major players like Morgan Stanley have entered the field by acquiring private shares platform EquityZen, while S&P Global invested $1.8 billion in private market data provider With Intelligence.
Rick Wurster, President and CEO of Charles Schwab, emphasized the strategic value of this acquisition: “With the pool of private companies growing and remaining private for longer, a leading platform for individual investors to participate in private markets offers durable, strategic value. We anticipate significant growth in this area and believe our platform will serve as a primary venue for retail investors to explore new investment opportunities.”