Updated
Updated · Yahoo Canada Finance · Aug 14
Wall Street Firms Scale $120 Billion Pre-IPO Market for Retail Investors
Updated
Updated · Yahoo Canada Finance · Aug 14

Wall Street Firms Scale $120 Billion Pre-IPO Market for Retail Investors

3 articles · Updated · Yahoo Canada Finance · Aug 14

Summary

  • $120 billion in secondary private-stock trading has drawn Morgan Stanley, Charles Schwab and others into acquisitions and fintech partnerships aimed at expanding pre-IPO access for wealth clients.
  • That push reflects rising demand from high-net-worth investors for alternatives and a market where venture-backed companies stay private longer, increasing the need for liquidity before IPOs.
  • Retail access is moving beyond the $600 billion evergreen-fund market into direct ownership through platforms such as EquityZen and Forge Global, which also package stakes via SPVs and thematic funds.
  • User growth shows the scale firms are chasing: Forge reported 721,000 users at end-2024, while Morgan Stanley said in February that EquityZen had more than 800,000.
  • The expansion underscores Wall Street's broader bet that public and private markets are converging as firms compete for a share of roughly $150 trillion in private wealth.

Insights

Are Wall Street firms democratizing wealth, or just offloading overvalued startup risks onto retail investors before an IPO?
With hidden fees and strict transfer blocks, is the $120 billion pre-IPO market a golden ticket or a liquidity trap?