The Wall Street giant’s newest deal, the first under CEO Ted Pick, signals a push to connect clients with private company shares and deepen relationships with high-growth firms.
Morgan Stanley has unveiled plans to acquire EquityZen, a New York-based private shares trading platform, in a move that underscores Wall Street’s growing focus on private markets and the rising demand among investors for access to high-growth startups before they go public.
The deal, announced Wednesday, marks the first acquisition under Chief Executive Officer Ted Pick and is expected to close in early 2026, pending regulatory approval. Terms of the transaction were not disclosed.
The acquisition will bring EquityZen’s marketplace and technology under the Morgan Stanley umbrella, enhancing the bank’s ability to offer clients a broader suite of services related to private company shares.
EquityZen, founded in 2013, has facilitated more than 49,000 transactions across over 450 private companies and boasts more than 800,000 registered users. Its platform connects shareholders of private companies with accredited investors seeking pre-IPO exposure, a segment that has seen heightened interest as companies stay private for longer periods.
In a statement, Jed Finn, head of Morgan Stanley Wealth Management, said the combination “uniquely address[es] client needs as companies stay private longer, such as delivering liquidity solutions for their employees and early investors in a seamless yet controlled process of their own design.”
He added that the tie-up “brings an institutional-grade infrastructure to a marketplace that hasn’t always been easy to navigate for buyers or sellers and certainly not for the issuers.”
The move comes amid a surge in demand for pre-IPO shares, particularly in sectors linked to artificial intelligence and technology. Recent successful public debuts by firms such as CoreWeave and Figma have fueled investor appetite for private company stakes, with platforms like EquityZen reporting a sharp increase in trading volumes over the past year. According to company data, trading volume on EquityZen’s private secondary market more than doubled in the third quarter compared to the same period last year.
Industry observers note that the number of public companies in the US has halved since 2000, while the number of private, venture-backed firms has grown significantly. Bank of America research estimates the value of private capital assets reached $22 trillion in 2024, more than doubling since 2012. As a result, financial institutions are increasingly building capabilities to connect clients with private companies and provide liquidity for pre-IPO shares.
Michael Gaviser, head of private markets at Morgan Stanley Wealth Management, said, “We are seeing rising interest in private markets exposure across our 20 million clients. EquityZen is the link that connects supply and demand through a seamless, technology-driven solution, broadening the toolset we provide Workplace clients, while expanding opportunities for advisors and their clients.”
The acquisition is also expected to benefit private companies and their employees by providing more streamlined options for managing equity and liquidity events. EquityZen’s issuer-aligned model will allow companies to retain discretion over when and how their shares are traded, integrating directly with Morgan Stanley’s cap table management solutions.
For Morgan Stanley, the deal builds on recent efforts to deepen relationships with private market companies, including a partnership with equity management platform Carta and the introduction of a Founders Specialist designation for advisors focused on the needs of founders and private market executives.
The bank expects to incur about $100 million in integration costs related to the EquityZen acquisition over the next two years, a spokesperson told Bloomberg.
Atish Davda, CEO of EquityZen, said, “Our entire mission has been to bring private markets to the public. By integrating into Morgan Stanley, we will reach more investors and shareholders than ever before.”
