Schwab said the move will speed up its drive to deliver private markets capabilities to retail and advisor clients. It said trends show that private wealth capital allocated to alternative asset classes is expected to grow from $4 trillion today to $13 trillion by 2032. 

The acquisition adds to Charles Schwab’s recent launch of Schwab Alternative Investments Select, a new alternative investments platform, available to all eligible retail clients with more than $5 million in household assets at Schwab.

Earlier this month, the firm also rolled out Schwab Private Issuer Equity Services, an equity management solution designed to support private companies in the late stages prior to an initial public offering.

“Access to Schwab’s 46 million client accounts and $11.6 trillion in client assets creates a strong distribution platform for private securities,” Schwab’s Wurster said.

A major investment theme in the past few years has been expanding access to previously hard-to-enter asset classes such as venture capital, private equity and credit. As more companies de-list, or don’t even bother to go to IPOs, it means that investors used to holding listed equities need to figure out how to improve access to sources of return. The US has adjusted the Accredited Investor Rule to widen access; the UK and European Union have developed the Long Term Asset Fund and ELTIF structures, respectively. Such changes are not without controversy because non-public market investments are typically less liquid – a point that retail investors may struggle with. In the summer orf 2025, the Trump administration enabled 401 plans to hold private market/alternative investments, adding to a recent tweak to Accredited Investor rules.

Skepticism
There are some skeptical noises about the retail push into private markets.

Dan Weiner, former CEO of RWA Wealth Partners, said in a LinkedIn post: "Retirement returns derived from privates won't be known for years to come but I fear that by the time today's workers begin trying to cash out and live on their 401s they're going to be very, very disappointed with the sub-par returns the privates generate. Whether they'll know it is another matter entirely."

He argued that since the idea of heavy allocation to alternatives was pioneered by the Yale University endowment fund in the 1980s – hence the "Yale Model" – matters have changed. "Over the past decade, private have barely kept up with the broad stock market. What used to be pitched to investors as a way to generate outsized returns is now being advertised as a way to avoid volatility."

Private markets are also "ridiculously opaque," Weiner said. He added that it was ironic – it might help investors relax if they don't know what's under the hood, but a bit more disclosure should be encouraged. He also argued that private market investments typically come with higher fees than for an index tracker fund, which suggests why managers are chasing the 401 market. 

On the other hand, family offices and wealth managers appear to remain keen on the space, as described here.

Investors appeared sanguine about Schwab's move. Shares in the firm were up 0.3 per cent yesterday as of noon Eastern time in the US, and have risen 27.3 per cent since early January.

Deal terms
Schwab will acquire all of Forge’s issued and outstanding common shares for $45 cash per common share. The transaction has been unanimously approved by the boards of directors of Schwab and Forge. The transaction is expected to close in the first half of 2026, subject to customary closing conditions, including approval by Forge’s stockholders and regulatory approvals. 

Forge’s two largest stockholders, Motive Capital and Deutsche Börse, have agreed to support the transaction.

JP Morgan Securities served as financial advisor and Wachtell, Lipton, Rosen & Katz acted as legal advisor to Schwab. Financial Technology Partners served as financial advisor and Morris, Nichols, Arsht & Tunnell LLP acted as legal advisor to a special committee of Forge’s board of directors. Sullivan & Cromwell LLP acted as legal advisor to Forge.