Charles Schwab & Co. of San Francisco has reached an agreement with OffRoad Capital Corporation, also of San Francisco, to offer private equity investments to Schwab customers.
Schwab will only offer these investments to those who have $1 million or more invested with Schwab, in addition to investment advisors who do business with the firm.
Schwab wants to give high-net-worth customers access to the private capital market which has traditionally been open only to institutional investors, said Charles Schwab, chairman and chief executive officer, in a statement.
OffRoad Capital runs a web site where accredited investors, which the SEC defines as individuals with net worths of $1 million or more, can communicate with officers of companies trying to raise private capital. OffRoad charges each investor a $1,000 annual membership fee for access to the site.