In a significant move, Charles Schwab is venturing deeper into private markets by acquiring the shares platform Forge Global for a substantial $660 million. This acquisition comes as the demand for pre-IPO investment opportunities grows, indicating a shift in Wall Street’s approach toward early-stage investments.

Having gone public in 2021 via a SPAC, Forge Global facilitates a marketplace that has seen over $17 billion in private shares traded. Schwab's agreement to purchase shares at $45 each represents a 72% premium compared to Forge’s last trading price, resulting in a 67% spike in its stock during morning trading.

The acquisition highlights a wider trend where companies delay public offerings, prompting financial institutions to offer liquidity and access to pre-IPO shares. Major firms like OpenAI, SpaceX, and Bytedance are now valued comparably to S&P 500 companies, underscoring the growing importance of the private sector.

With a market cap of $170 billion and managing $11.6 trillion in client assets, Schwab is keen to capitalize on this burgeoning investor interest. Experts believe this deal will spawn new product initiatives while addressing concerns related to share dilution.

The acquisition is slated to finalize by mid-2026, with guidance from J.P. Morgan Securities for Schwab and Financial Technology Partners for Forge’s special committee.

As private market activities accelerate, Schwab’s strategic acquisition emphasizes the merging pathways of public and private investments, offering novel opportunities for investors in the rapidly expanding high-growth sector.