Schwab RIA Head Sees Forge Global Acquisition Part of 'Heritage'

Core Insights - Charles Schwab's acquisition of Forge Global Holdings for $660 million aims to enhance alternative investment options for registered investment advisors (RIAs) [1][2] - The move is seen as a strategic effort to provide access to private markets, similar to Schwab's historical role in offering stocks and bonds to everyday investors [2] Group 1: Importance of Private Market Investments - More companies are remaining private for longer periods, increasing demand for private market investments [3] - Ultra-high-net-worth clients are actively seeking access to private market investments [3] - There is a notable shift in financial investing from traditional 60/40 portfolios to more customized investment strategies [3] Group 2: Modernization of RIA Client Programs - Schwab has increased its RIA client referral threshold from $500,000 to $2 million, modernizing its Schwab Advisor Network program [5][6] - The adjustment aligns Schwab with industry standards, as many advisory firms have higher minimums for client referrals [6] - The firm is focused on enhancing its retail client coverage, which has declined to an uncomfortable level, aiming to better meet client needs [6][7]