Charles Schwab's $660M Forge Acquisition: Strategic Move into Private Markets

This analysis is based on the CNBC interview [5] with Charles Schwab CEO Rick Wurster published on November 6, 2025, discussing the bank’s $660 million acquisition of Forge Global and the rise of private investing platforms.

Charles Schwab’s $660 million acquisition of Forge Global represents a calculated strategic expansion into private markets, targeting the growing retail investor demand for pre-IPO investment opportunities [1][4]. The deal, Schwab’s first major acquisition under CEO Rick Wurster, involves purchasing all outstanding Forge shares for $45 per share in cash [1][4]. Forge Global operates a premier private market platform that has facilitated over $17 billion in private company share transactions since inception through September 2025 [1], providing Schwab with immediate scale and expertise in the private securities space.

The market response to the announcement revealed divergent investor sentiment. Forge Global’s stock surged dramatically, gaining 68.36% to $43.98 on massive volume of 2.74 million shares (compared to average 109K) [0], with a 104.94% gain over the past five days indicating market anticipation of the deal. In contrast, Charles Schwab’s stock showed muted reaction, trading up only 0.42% to $94.07 [0]. This limited movement suggests the market views the acquisition as strategically logical rather than transformative, particularly as it occurred during a challenging market session with the Financial Services sector declining 1.42% [0].

The acquisition presents a complex financial picture. Schwab maintains strong fundamentals with $170.77 billion market cap, 28.04% net profit margin, and 17.54% ROE [0], providing the financial capacity to absorb the acquisition. However, Forge shows concerning financial metrics with negative profitability (-73.62% net margin) and negative ROE (-30.82%) [0]. The $660 million valuation represents a significant premium to Forge’s pre-announcement trading levels, reflecting the strategic value Schwab places on private market access capabilities rather than immediate financial contribution [1][4].

This acquisition signals a broader industry transformation where traditional brokerages are expanding into alternative investments and private markets to meet evolving retail investor demands [2][4]. The deal positions Schwab competitively against fintech platforms that have pioneered private market access, potentially creating a new competitive dynamic in the wealth management space. Schwab’s $11.6 trillion in client assets provides massive distribution potential for Forge’s private market platform [4], potentially creating new revenue streams from private market transaction fees and advisory services.

The acquisition aligns with the broader trend of democratizing access to traditionally exclusive investment opportunities. CEO Rick Wurster emphasized that private markets will create new opportunities for retail investors [5], reflecting Schwab’s strategy to expand beyond traditional public market offerings. This move could accelerate the convergence of public and private market investing, potentially reshaping how retail investors access growth opportunities in private companies.

The deal highlights the growing importance of technology platforms in financial services. Forge’s technology-focused private market platform will require significant integration with Schwab’s traditional brokerage infrastructure, presenting both opportunities and challenges. The success of this integration will be crucial for realizing the strategic value of the acquisition and could serve as a benchmark for similar transactions in the industry.

: Users should be aware that integrating a technology-focused private market platform with a traditional brokerage infrastructure presents significant operational and technological challenges that could impact execution timelines and costs [0]. The complexity of combining different business models and technology systems requires careful management.

: This development raises concerns about potential regulatory scrutiny of retail access to private markets, which could impact the deal’s closing timeline or require modifications to the business model. The evolving regulatory landscape for retail access to private securities remains a key uncertainty [0].

: Forge’s current negative profitability metrics (-73.62% net margin) suggest the acquisition carries significant financial risk that will require substantial investment to achieve profitability [0]. The path to financial viability for the combined private market operations remains unclear.

: Schwab’s early move into private markets through traditional brokerage channels could establish a competitive advantage as other firms consider similar strategies. The acquisition positions Schwab as a pioneer in democratizing private market access for retail investors.

: With $11.6 trillion in client assets [4], Schwab has substantial opportunities to cross-sell private market opportunities to existing wealthy clients, potentially creating new revenue streams and deeper client relationships.

: The deal could establish Schwab as a leader in the convergence of public and private market investing, potentially attracting new clients seeking comprehensive investment solutions across both market types.

The $660 million Forge acquisition represents a bold strategic move by Charles Schwab to expand into private markets and democratize access to pre-IPO investment opportunities for retail investors. The transaction, expected to close in the first half of 2026 subject to regulatory approvals [1][4], provides Schwab with immediate scale in private markets through Forge’s platform that has facilitated over $17 billion in transactions [1].

While the strategic rationale appears sound given growing retail investor demand for private market access, the acquisition carries significant execution risks. Integration challenges, regulatory uncertainties, and Forge’s current negative profitability metrics warrant careful monitoring [0]. The success of this strategic pivot will depend on Schwab’s ability to effectively integrate Forge’s technology platform, navigate the evolving regulatory landscape, and achieve profitability in the private market segment.

Investors and industry observers should monitor regulatory approval processes, integration milestones, customer adoption of private market offerings, competitive developments, and the acquisition’s effect on Schwab’s profitability metrics in subsequent quarters [0]. The deal’s outcome could have broader implications for the wealth management industry and the future of retail access to private markets.