Morgan Stanley has reduced the fees for clients trading shares of private companies on its recently acquired EquityZen platform by half, aiming to outperform competitors and expand its presence in this growing market. According to a statement released on Thursday, the bank lowered the fee rate for both buyers and sellers in most transactions from 5% to 2.5%. This may only be the beginning. Jed Finn, head of Morgan Stanley’s wealth management division, stated in an interview that the company will "reduce fees as low as necessary to ensure clients receive the best available prices in the market." Morgan Stanley completed its acquisition of EquityZen last month. The platform enables clients to trade shares of privately held companies. The bank reached the acquisition agreement last year, marking the first acquisition under the leadership of CEO Ted Pick. Finn remarked, "The private company market has historically developed in a high-risk manner. Our overall view is that introducing greater transparency to the entire market will ultimately benefit our investor clients." An increasing number of companies are choosing to remain private for longer periods, with the largest among them reaching valuations comparable to major public companies. This trend has fueled investor demand for opportunities in firms like OpenAI and SpaceX, while employees of these companies seek to monetize their equity holdings. Banks are positioning themselves to intermediate in this expanding market. Last year, within just a few weeks, Morgan Stanley announced its acquisition of EquityZen, Goldman Sachs agreed to purchase Industry Ventures, and Charles Schwab finalized a deal to acquire Forge Global Holdings.