Schwab to Buy Forge Global to Boost Private Markets Offering, Stock Up

Charles Schwab SCHW shares gained 1.7% following its announcement of an agreement to acquire Forge Global Holdings, Inc. FRGE on Nov. 6. The all-cash transaction is valued at roughly $660 million.
 
Forge Global, based in California, offers accredited investors a broad range of direct or indirect opportunities to engage in the private markets. Its combination of a direct marketplace, private company solutions and proprietary data helps enhance private market access and transparency for qualified investors.

FRGE operates the premier private market platform and a leading trading marketplace through which investors have traded more than $17 billion in private company shares as of Sept. 30, 2025.

Details of the Forge Global Buyout by Schwab

Per the agreement, Schwab will pay $45 per share in cash for each share of Forge Global. The merger agreement has been approved by the board of directors of both entities.

Schwab expects the Forge Global transaction to be completed in the first half of 2026, subject to customary closing conditions.

Following the close, Schwab will begin offering Forge Global’s products to select ultra-high-net-worth clients, introduce ’40 Act funds to broaden private-market access and continue enhancing the integrated platform. In the near term, the company plans to extend access to more than 1 million retail clients and registered investment advisers, with further expansion to all qualified investors and enhanced stock-plan and proprietary solutions over the medium term.

Rationale Behind Acquisition Pursued by SCHW

This move aligns with Schwab’s strategy to offer private market capabilities to retail and advisor clients, leveraging its comprehensive suite of wealth, advisory, and investment management solutions, to address the complex needs of investors.

This addition of direct access to private securities through Forge Global builds on the recently launched Schwab Alternative Investments Select, an alternative investments platform available for retail clients with more than $5 million in household assets at Schwab. This move aims to capitalize on the sustained momentum in private markets, given the rising investor demand for early exposure to fast-growing startups to achieve greater returns and portfolio diversification.

Rick Wurster, president and CEO of Schwab, stated, “Access to Schwab’s 46 million client accounts and $11.6 trillion in client assets creates a strong distribution platform for private securities. 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 expect meaningful growth in this space and believe our platform will become a go-to venue where retail investors discover new investment opportunities.”

This acquisition aligns with Schwab’s strategy to diversify its revenue streams. As transactional activity improves in the private market, it will drive a surge in revenues for Schwab. In sync with this, earlier this month, the company introduced Schwab Private Issuer Equity Services, a complete equity management solution designed to help private companies in the late stages before an initial public offering.

Schwab’s Zacks Rank & Price Performance

Shares of Schwab have risen 22.3% in the past year compared with the industry’s 27.2% growth.

SCHW currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Expansion Efforts by Other Finance Firms

Last month, Huntington Bancshares Incorporated HBAN agreed to acquire Cadence Bank, a regional financial institution with $53 billion in assets headquartered in Houston, TX and Tupelo, MS.

The transaction is expected to be 10% accretive to Huntington’s earnings per share, mildly dilutive to regulatory capital at close, and 7% dilutive to tangible book value per share, with an earn-back period of about three years, including merger expenses.

Similarly, The Goldman Sachs Group, Inc. GS agreed to acquire Industry Ventures, a leading venture capital platform that invests across all stages of the venture capital lifecycle. The move underscores Goldman’s strategic intent to expand its exposure to the innovation economy and further solidify its position in the global alternatives market.

The planned acquisition of Industry Ventures underscores Goldman’s strategic intent to strengthen its position in private markets and expand access to high-growth technology companies for clients globally. The deal is a well-thought-out step in the company’s long-term strategy to strengthen its $540 billion alternatives business, which spans private equity, growth capital, infrastructure, credit and real estate.

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This article originally published on Zacks Investment Research (zacks.com).

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