Schwab Completes Forge Global Buyout, Boosts Private Markets Offering

Charles Schwab SCHW has completed the acquisition of Forge Global Holdings, Inc. The all-cash transaction, valued at $660 million, was announced in November 2025.

Forge, 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.

Details of Schwab-Forge Deal

Per the agreement, Schwab paid $45 per share in cash for each share of Forge.

At the time of the deal announcement, it was expected that following the closure, Schwab would begin offering Forge’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 (RIAs), with further expansion to all qualified investors and enhanced stock-plan and proprietary solutions over the medium term.

Rick Wurster, the president and CEO of Schwab, stated, “We believe helping more people participate directly in the growth of private companies is a meaningful opportunity for wealth creation and diversification, attractive to individual investors and the advisors who serve them. This acquisition helps us round out our alternative investments offer while bringing expanded access, better value, and increased transparency to the private markets, just as Schwab historically brought to the public market.”

Rationale Behind SCHW’s Buyout

The acquisition 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.

The addition of direct access to private securities through Forge builds on Schwab Alternative Investments Select, an alternative investments platform available for retail clients with more than $5 million in household assets at Schwab. The 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.

The acquisition aligns with Schwab’s strategy to diversify its revenue streams. As transactional activity improves in the private market, the deal is expected to drive a surge in revenues for Schwab. In sync with this, last year, SCHW 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 Price Performance & Zacks Rank

SCHW shares have risen 3.5% in the past six months compared with the industry’s 4.8% growth.

Currently, Schwab carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Inorganic Expansion Efforts by Other Finance Firms

In January, Prosperity Bancshares, Inc. PB completed the previously announced acquisition of American Bank Holding Corporation (“ABHC”) and its wholly-owned subsidiary, American Bank. Operational integration of the merger is scheduled for September 2026.

Prosperity Bancshares announced the $321.5-million all-stock merger deal with ABHC on July 18, 2025, to significantly expand its presence across South and Central Texas markets, including Corpus Christi, San Antonio and Austin.

Upon closure, Prosperity Bancshares issued 4,439,981 shares of common stock to the former shareholders and award holders of ABHC. ABHC brought $2.3 billion in deposits and $1.8 billion in loans to the combined entity.

Commerce Bancshares, Inc. CBSH completed the all-stock deal to acquire FineMark Holdings, which was announced in June 2025. The operational system conversion required for full integration is expected to take place in the second half of 2026.

With the transaction now closed, CBSH is positioned to meaningfully expand its private banking and wealth management franchise. The acquisition strengthens Commerce Bancshares’ existing footprint in Florida, while extending its presence into new high-growth markets, including Arizona and South Carolina.

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

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