Morgan Stanley to acquire Vinyl Equity for digital wealth management

By Divya Shah

Why this matters: The acquisition highlights growing investment in technology that supports private and public capital markets. By adding Vinyl’s digital transfer agency capabilities, Morgan Stanley aims to bring shareholder recordkeeping, equity administration and wealth management services into a more integrated platform.

Morgan Stanley to acquire Vinyl Equity, a US-based capital markets infrastructure provider, to expand its wealth management services and strengthen its digital capabilities.

The financial terms of the transaction have not been disclosed. However, media reported that integration costs are expected to reach $65 million over the next two years, citing a company spokesperson. The acquisition is expected to be completed in the first quarter of 2027, subject to customary closing conditions.

Founded in 2022 by CEO Rob Schoder and CTO Poornaprajna Udupi, Vinyl provides transfer agency services to publicly listed companies and businesses preparing to go public. Its cloud-native technology platform supports corporate actions management, shareholder recordkeeping, proxy administration and paying agency services.

The acquisition will expand Morgan Stanley’s workplace financial benefits and equity compensation business, Morgan Stanley at Work, by adding transfer agency capabilities. The combined offering is expected to provide companies with an integrated platform for cap table management, equity administration, share transfers and wealth management infrastructure across private and public markets.

Morgan Stanley said the acquisition would also strengthen its digital asset ecosystem by adding infrastructure to support future tokenisation initiatives.

Vinyl’s purchase follows its $20 million Series A funding round in June, led by Jump Capital, which brought its total funding to more than $30 million.

The deal also builds on Morgan Stanley’s efforts to expand its presence in private markets and wealth management. Earlier this year, the bank completed its acquisition of EquityZen, a New York-based platform for private company shares.

Together with EquityZen and Morgan Stanley Wealth Management’s Private Markets Transaction Desk, Vinyl is expected to strengthen the bank’s services for late-stage private companies preparing to enter public markets.

“Private markets are playing an increasingly important role in wealth management as companies stay private for longer and value is created outside the public markets,” said Jed Finn, head of Morgan Stanley Wealth Management.

He added that as companies grow and become more complex, the infrastructure supporting their transition to public markets must also evolve. Finn also highlighted the role of blockchain technology, atomic settlement and tokenisation in reshaping the industry.

Vinyl’s digital-first technology is expected to help Morgan Stanley advance how ownership is recorded, transferred and managed as part of its broader private-to-public market offering.