Morgan Stanley has announced its acquisition of EquityZen, a trading platform specializing in shares of private companies. While the financial details of the deal have not been disclosed, this acquisition is expected to enhance Morgan Stanley’s offerings in the private markets.
Founded in 2013, EquityZen serves as a marketplace for pre-IPO investments, linking shareholders of private firms with accredited investors. The platform boasts approximately 800,000 registered users and has facilitated over 49,000 transactions involving more than 450 private companies.
This strategic acquisition is positioned to strengthen Morgan Stanley’s private markets ecosystem by allowing the firm to offer a comprehensive array of services to private companies and their stakeholders. These services include capital table solutions, liquidity programs, direct and co-investment opportunities, and secondary trading options.
EquityZen’s model, which aligns closely with the interests of issuers, will enhance Morgan Stanley’s relationships with private companies while providing its wealth management clients greater access to private equity shares.
Jed Finn, head of Morgan Stanley Wealth Management, emphasized the importance of this acquisition, stating, “This announcement comes at a critical time in the evolution of the private markets. By integrating EquityZen into Morgan Stanley, we are uniquely positioned to meet our clients’ needs, especially as companies remain private for extended periods. We aim to deliver liquidity solutions for employees and early investors through a seamless and controlled process that they can design themselves. This integration allows us to combine our capital table management solutions with a private shares marketplace, offering complete solutions to our private market clients.”
This development follows Morgan Stanley’s recent expansion of its partnership with Carta, a private capital software platform, where the bank serves as the exclusive U.S. equity management and workplace solution provider for late-stage private companies preparing for public listings.