Forge Global: Schwab's Buying... What's the Endgame?

Schwab Buying Forge Global? More Like Buying a Ticket to the Private Market Circus

The Inevitable Feeding Frenzy

So, Schwab's dropping $660 million on Forge Global? Color me shocked. Okay, not really. The writing's been on the wall for years: everyone wants a piece of that sweet, sweet private equity pie.

They're calling it "democratizing access" to private markets. Give me a break. It's about Schwab getting a cut of those sweet, illiquid assets they can lock retail investors into. The number of public companies has been shrinking for decades, and all the "growth" is happening pre-IPO. If you can't beat 'em...buy 'em, right? According to a recent report, Charles Schwab to buy private shares platform Forge Global in $660 million deal.

This whole thing just feels...desperate.

The Illusion of Exclusivity (For a Price)

Forge's CEO, Kelly Rodriques, is quoted as saying this "will transform how the private market works." Oh, really? Transform it how? By making it easier for Schwab to skim fees off every transaction? Because that's what it looks like from where I'm sitting.

And Rick Wurster, Schwab's CEO, blathering about "deepening liquidity, improving transparency, and further democratizing access." Transparency? In the private markets? That's rich. It's like saying you're going to democratize access to the VIP section of a nightclub. Sure, anyone can technically get in...if they pay enough.

Schwab already has "Schwab Alternative Investments Select" for the ultra-rich. This Forge acquisition just feels like a way to trickle down the scraps to the merely affluent. The scraps that are projected to grow to $13 trillion by 2032, according to Schwab's own press releases. Convenient, ain't it?

The "Innovation Economy" Scam

Rodriques also says investors will "gain new ways to participate in the innovation economy." That's the line they're pushing. The "innovation economy." As if investing in pre-IPO startups is some kind of patriotic duty, instead of a high-risk gamble.

Let's be real, most of these startups are gonna flame out. And who's gonna be left holding the bag? Probably the same people who always get screwed: the retail investors who don't know any better and are told they're "missing out" on the next big thing.

And speaking of missing out... the FAA is cutting thousands of flights a day. A move that could affect travelers in both San Francisco and Oakland. What does this have to do with anything? Absolutely nothing. I just wanted to complain about the airport.

Meanwhile, e.l.f. Beauty's stock is tanking because of tariffs. Another "innovation economy" success story, I guess. Daily Digest: Pelosi to retire, Charles Schwab buys Forge Global.

I wonder, how many of these "qualified investors" buying and selling private shares on Forge's platform actually understand the risks involved? Or are they just chasing the next unicorn, hoping to get rich quick?

So, What's the Real Story?

This ain't about "democratizing" anything. It's about Schwab, Morgan Stanley, and every other financial institution scrambling to grab a bigger piece of the pie before it's all gone. And the retail investor? They're just the mark.