Forge Global’s Strategic Move: Greg Lee Leads the Charge in Private Markets

The appointment of Greg Lee to lead Forge Global’s Trading & Data Platform marks a pivotal moment for the company’s ambition to dominate private market infrastructure. With over two decades of experience in electronic trading, market innovation, and cross-asset platforms, Lee’s expertise positions Forge to capitalize on the rapid digitization of private markets—a sector projected to grow exponentially as institutional investors seek higher returns and diversification.

Why Greg Lee Matters

Lee’s career is a blueprint for bridging traditional finance and modern technology. At Barclays, he drove a 75% increase in electronic trading revenue by modernizing algorithms and cross-asset platforms. At Paxos, he pioneered blockchain-based clearing solutions that challenged legacy systems like DTCC. Now at Forge, his mandate is clear: accelerate the development of an integrated platform that unifies trading execution, data analytics, and institutional-grade infrastructure for private assets.

The CEO of Forge, Kelly Rodriques, highlighted Lee’s unique ability to “balance innovation with commercial viability”—a skill critical as Forge scales its services. His leadership will be vital in advancing initiatives like Forge Price™, a proprietary pricing dataset for private markets developed with ICE, and the planned acquisition of Accuidity Capital Management, which could expand Forge’s asset management capabilities.

Financial Momentum and Strategic Risks

Forge’s Q1 2025 results underscore the platform’s growing influence:
- Marketplace revenue (excluding transaction costs) surged 92% year-over-year to $15.8 million, driven by a 132% jump in trading volume to $692.5 million.
- Net take rate, however, fell to 2.3% from 2.8%, reflecting a strategic shift toward large institutional block trades. While this boosts market share, it pressures margins—a challenge Lee must address.

Despite revenue growth, Forge reported a $16.2–$16.7 million net loss in Q1, driven by rising tech costs (e.g., offshore teams) and operational expenses. Investors must weigh this against the $93.1 million cash reserve and the $17.6 billion in assets under custody, which signal sustained institutional trust.

The Bigger Picture: Private Markets in Disruption

Private markets are undergoing a structural transformation. AI, crypto, and decentralized finance (DeFi) are reshaping how assets are valued, traded, and managed. Lee’s background in data-driven decision-making and market infrastructure aligns perfectly with this shift. For instance:
- AI Integration: Forge’s platform could leverage AI to improve pricing accuracy and risk management, especially as companies like Chainalysis (a Forge-listed startup) acquire AI tools for compliance.
- DeFi and Blockchain: Lee’s experience at Paxos in blockchain-based clearing systems could help Forge compete with legacy institutions in tokenized assets and smart contracts.

Forge’s 2.5 million custodial accounts (up 4% quarter-over-quarter) also highlight its role as a trusted custodian—a key advantage in an era of rising regulatory scrutiny.

Risks to Monitor

• Margin Pressures: The declining net take rate and tech costs require Lee to optimize pricing strategies while scaling.
• Regulatory Headwinds: Private market platforms face increasing scrutiny from regulators like the SEC. Forge’s partnerships (e.g., with ICE) may help navigate compliance but add complexity.
• Competitor Threats: Legacy players like DTCC and new entrants in blockchain are vying for market share. Forge’s agility will be tested.

Conclusion: A Long-Term Play with Short-Term Challenges

Greg Lee’s appointment is a masterstroke for Forge’s ambition to become the Amazon of private markets—a neutral, tech-driven platform connecting investors, issuers, and custodians. The Q1 surge in trading volume and institutional block trades validates this vision. However, investors must remain patient:

• Growth vs. Profitability: Forge’s $25.1 million in Q1 revenue (up 36% from prior quarter) suggests scalability, but the path to profitability remains bumpy.
• Market Leadership: With Forge Price™ and partnerships like the Yahoo Finance data collaboration, the company is building defensible moats in private market data—a sector valued at $1.8 trillion and growing.

While risks like margin pressures and regulation linger, Lee’s track record and the $17.6 billion in assets under custody suggest Forge is well-positioned to lead in this $1.8 trillion opportunity. For investors willing to endure short-term volatility, Forge’s platform could be a foundational holding in the private market revolution.

In conclusion, Forge’s strategic appointment of Greg Lee is more than a leadership change—it’s a bold bet on the future of finance. The next phase will test whether Lee can turn this vision into sustainable profits. For now, the data points to a company at the forefront of a defining industry shift.