CNBC Television
Schwab CEO on $660M Forge deal: Private markets will create new opportunities for retail investors
11/6/2025, 4:02:57 PM
Economic Summary
- Charles Schwab is acquiring Forge Global in a $600 million deal valued at $45 per share, reflecting consolidation in private-market trading platforms (FRGE).
- Private markets have grown substantially: average company stays private ~14 years now versus 6 years in 2000, contributing to an ~85% drop in IPO activity and larger private-company sizes.
- Forge claims leadership with relationships across more than 625 private companies and the highest transactional volume, positioning it as a key access point for private equities.
- Schwab plans to launch a 40-act interval fund in Q1 2026 to provide retail exposure to a basket of the top ~60 private companies, addressing liquidity and access via an interval structure.
- Schwab is expanding crypto offerings, planning spot Bitcoin trading in H1 next year; clients already own ~20% of crypto exchange-traded products and research engagement is up ~90% year-over-year.
Bullish
- Democratizes access to private-company wealth for retail investors via Schwab's scale.
- Forge is the leader in private-company marketplaces with relationships across 625+ companies.
- Planned 40-act interval fund (Q1 2026) will let everyday investors access a basket of top private firms.
- Schwab's planned spot Bitcoin offering and high client engagement in crypto expand product set and retention.
Bearish
- Charles Schwab paid a steep ~70% premium to acquire Forge, implying potential overpayment risk.
- Interval fund structure limits liquidity compared with public markets, constraining retail access to private assets.
- Integration and execution risk from folding Forge into Schwab's platform and launching new products.
- Private-market dynamics (IPOs down ~85%) mean fewer exits, reducing liquidity and potential upside for investors.
Bullish tickers
SCHWFRGE
Bearish tickers
FRGESCHW
FRGE
1 price targets
45
Bullish
Market leader in private-company trading with 625+ company relationships and high transaction volume, attractive to Schwab.
Bearish
Acquired at roughly a 70% premium, raising concerns about overpaying and integration risk into Schwab.
SCHW
Bullish
Expands product suite into private markets and spot crypto, leveraging scale to democratize access and retain clients.
Bearish
Strategic acquisition is expensive and creates execution and liquidity challenges around private assets and interval funds.
MS
Bullish
Acquiring EquityZen signals strategic push into private-market access and competing in the same space as Schwab.
Bearish
Competition in private-market platforms increases execution and integration burden.
STRIPE
Bullish
Large private companies like Stripe have created substantial private-market wealth for employees and investors.
Bearish
Employee paper gains can be illiquid, limiting practical financial benefit until liquidity events occur.
ANTHROPIC
Bullish
High-growth private firms such as Anthropic represent potential significant wealth creation in private markets.
Bearish
Significant private valuations may remain inaccessible to retail investors without clear liquidity paths.
SPACEX
Bullish
Successful private companies like SpaceX have generated substantial value that retail investors may soon access via new products.
Bearish
Private-company holdings (e.g., SpaceX) are illiquid, complicating personal finance decisions for employees.
People mentioned
Rick WursterSarahCharles Schwab