Morgan Stanley acquires EquityZen to revolutionize private market investing

In a strategic move poised to reshape the private markets landscape, Morgan Stanley has announced its acquisition of EquityZen, a leading platform for trading private company shares. This integration marks a significant step for the financial powerhouse as it continues to expand its services for private companies, investors, and employees seeking liquidity in a market where companies increasingly remain private for longer periods.

EquityZen’s innovative platform connects private company shareholders with accredited investors, enabling access to pre-IPO shares through a technology-driven marketplace. Since its founding in 2013, EquityZen has registered over 800,000 users and facilitated more than 49,000 transactions across 450 private companies. By joining forces with Morgan Stanley, the platform will now operate within a larger ecosystem, offering clients a seamless blend of cap table solutions, tender programs, co-investment opportunities, and secondary market access.

“We are thrilled to welcome the EquityZen team to Morgan Stanley,” said Jed Finn, Head of Morgan Stanley Wealth Management. “As private companies extend their life cycles before going public, there is growing demand for innovative liquidity solutions for employees and early investors. EquityZen’s platform, combined with our cap table management and private market services, allows us to deliver end-to-end solutions that are both efficient and fully customizable.”

The acquisition places issuers at the center of decision-making, giving them full discretion over how and when their shares trade. This issuer-aligned model is expected to enhance operational efficiency for companies and provide employees with a more streamlined, transparent method to access liquidity. The integration also strengthens Morgan Stanley at Work, the firm’s workplace platform, giving participants more options to manage their private company holdings.

Michael Gaviser, Head of Private Markets at Morgan Stanley Wealth Management, highlighted the growing demand for private market exposure: “We are seeing rising interest across our 20 million clients. EquityZen acts as a bridge, connecting supply and demand in a technology-enabled, scalable way. This acquisition strengthens our ability to offer Advisors and clients expanded opportunities in private markets.”

Atish Davda, CEO of EquityZen, expressed enthusiasm for the partnership: “Joining Morgan Stanley is about scaling our mission to bring private markets to the public. With Morgan Stanley’s extensive products and services, we can provide unmatched value to issuers, shareholders, and investors while reaching a broader audience than ever before.”

This acquisition follows Morgan Stanley Wealth Management’s recent partnership with Carta, further enhancing the firm’s capabilities in managing equity for late-stage private companies and providing founders and executives with specialized advisory services. The EquityZen deal is expected to close in early 2026, pending regulatory approvals. EquityZen operates out of New York with a team of approximately 50 professionals.

The move reflects a broader trend in finance, where major institutions are seeking to expand beyond public markets and capture growth in private equity. Companies like OpenAI, SpaceX, and Bytedance maintain private valuations that rival or exceed major public firms, fueling investor demand for early-stage exposure. By acquiring EquityZen, Morgan Stanley positions itself to capture value in this evolving landscape while offering clients a comprehensive suite of tools for navigating private market opportunities.

FAQ

Q: What is the significance of Morgan Stanley acquiring EquityZen?
A: The acquisition expands Morgan Stanley’s private markets ecosystem, giving clients access to pre-IPO shares, liquidity solutions, and comprehensive cap table management.

Q: How many users does EquityZen have?
A: EquityZen has over 800,000 registered users and has processed more than 49,000 transactions across 450 private companies.

Q: When is the acquisition expected to close?
A: The transaction is expected to close in early 2026, pending regulatory approvals.

Q: How does this benefit private company employees?
A: Employees gain access to liquidity options for their shares through a streamlined, issuer-controlled process.

Q: What other partnerships has Morgan Stanley recently made in private markets?
A: Morgan Stanley recently partnered with Carta, a private capital management platform, to enhance services for late-stage private companies.