Secondary market platform EquityZen has been acquired by Morgan Stanley (NYSE:MS), the global investment bank and brokerage. Details of the transaction were not immediately available. The deal is expected to close in early 2026. Shares of Morgan Stanley were little changed on the news.
EquityZen is a top marketplace for private securities. As public markets have diminished, private securities have risen in popularity as investors seek to jump ahead of the line and gain access to shares in promising early-stage ventures. EquityZen also provides a valuable path for early shareholders seeking or in need of liquidity. Shares are typically issued under Reg D, which is only available to accredited investors. Investors could purchase shares in EquityZen-listed firms for as little as $5000.
Morgan Stanley said the purchase enhances its private markets ecosystem, including cap table management and liquidity programs.
Jed Finn, Head of Morgan Stanley Wealth Management, said the acquisition arrives at a key moment in the development of the private markets ecosystem. EquityZen and Morgan Stanley are expected to address client demands as companies stay private longer.
“With EquityZen, we combine our cap table management solutions with a private shares marketplace to deliver end-to-end solutions to our private market company clients.”
Atish Davda, CEO of EquityZen, said the deal was about scaling.
“Our entire mission has been to bring ‘private markets to the public,’ and by integrating into Morgan Stanley, we will reach more investors and shareholders than ever before. When our category-leading technology and welcoming marketplace are matched with Morgan Stanley’s comprehensive suite of products, services, and offerings focused on the private markets, we can create a value proposition together for issuers, shareholders, and investors that is unrivaled in our space.”
EquityZen reports over 800,000 users, having enabled more than 49,000 transactions for shares in 450+ private firms.
Head of Private Markets at Morgan Stanley Wealth Management, Michael Gavise, noted the rising interest in private securities, describing EquityZen as “the link that connects supply and demand through a seamless, technology-driven solution.”
Morgan Stanley also operates ETrade, thus potentially bringing private markets to a far larger audience.
For decades, the number of publicly traded firms has been declining. This is due to policymakers adding more rules and regulations on reporting firms, dissuading them from going public. In the end, smaller investors lose out, while big money benefits, as they can scoop up capital gains before a public listing. The Trump Administration, specifically at the Securities and Exchange Commission, has voiced its intent to improve both public and private markets by removing obtuse rules and expanding access. There are multiple bills in Congress designed to broaden the definition of an Accredited Investor, potentially increasing the number of individuals who may invest in private securities.
At the same time, the Trump Administration’s embrace of digital assets could help streamline the process of buying, sellin,g and managing both private and public securities.
EquityZen, headquartered in New York City, was launched in 2013 and currently has approximately 50 employees. It was not revealed whether existing employees will remain with the firm.