Morgan Stanley announced plans to acquire EquityZen, a leading platform for trading private company shares, as the bank deepens its push into the fast-growing pre-IPO market. The move reflects Wall Street’s broader effort to cater to rising investor appetite for early exposure to high-growth startups and enhance access to private market liquidity.
By owning a platform that connects buyers and sellers of private shares, Morgan Stanley aims to expand its wealth management offering, capture trading fees, and gain valuable insight into private-market valuations. “We are seeing rising interest in private markets exposure across our 20 million clients. EquityZen is the link that connects supply and demand,” said Michael Gaviser, Head of Private Markets at Morgan Stanley Wealth Management.
Founded in 2013, EquityZen has more than 800,000 registered users and has facilitated 49,000 transactions across over 450 private companies. The deal underscores how private markets are increasingly blurring the line with public markets, as firms like OpenAI, SpaceX, and Bytedance reach valuations comparable to major S&P 500 constituents.
Morgan Stanley’s acquisition follows its 2023 partnership with Carta, another major player in private shareholder management. Atish Davda, EquityZen’s founder and CEO, said demand for investing in private companies continues to surge, and integration with Carta and Solium Capital could unlock new investment pathways for the bank’s wealth management clients.
Source: Reuters
